Sui, a layer-1 blockchain platform, is under scrutiny after allegations surfaced that insiders may have profited from a recent increase in the value of its native token, SUI
Sui, a layer-1 blockchain platform, is under scrutiny after allegations surfaced that insiders may have profited from a recent increase in the value of its native token, SUI.
Reports suggest that individuals associated with the project could have sold as much as $400 million in tokens during a notable price surge last month.
In response to these claims, Sui issued a statement on X, formerly known as Twitter, asserting that no tokens were sold by insiders, including employees of the Sui Foundation, its core development team at Mysten Labs, or its investors.
The company clarified that any wallets involved likely belonged to an infrastructure partner, whose tokens are governed by a lockup agreement overseen by qualified custodians.
Despite this denial, skepticism persists within the cryptocurrency community. The allegations emerged as SUI's fully diluted valuation reached $23 billion—a figure that some industry analysts find excessive, considering the project's current development phase.
Over the past month, SUI's price has increased by over 100%, although it experienced a decline of 2.5% on the day of the announcement.
Critics, including Kyle Samani from Multicoin Capital, have expressed doubts regarding the clarity of Sui's statement. Samani noted that the response was vague, implying that while some individuals were excluded from the denial, others might still have benefited from token sales.
This has raised ongoing questions about the project's long-term sustainability and the potential for insider trading.
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