Token

Light

bullish

The recent triple-digit rally of the Sui token has sparked allegations of insider selling among cryptocurrency investors despite its impressive price gains.
Sui (<a data-ct-non-breakable="null" href="https://cointelegraph.com/sui-price-index" rel="" target="_self" text="null" title="https://cointelegraph.com/sui-price-index">SUI</a>) rose over 120% during the past month to trade at $2.25 as of 10:13 am UTC on Oct. 14. The token is up over 16% in the past week, according to Cointelegraph data.
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 <img alt="Cryptocurrencies, Investments, return of investment, Trading, Cryptocurrency Investment, SUI" src="https://s3.cointelegraph.com/uploads/2024-10/01928ac0-b838-7c29-9a2b-d70a5b51b61b" title="">
 <figcaption style="text-align: center;">
 SUI/USD, 1-month chart. Source: Cointelegraph
 </figcaption>
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However, allegations of insider selling have arisen despite the <a data-ct-non-breakable="null" href="https://cointelegraph.com/explained/sui-blockchain-explained-is-it-the-future-of-decentralized-networks" rel="" target="_self" text="null" title="https://cointelegraph.com/explained/sui-blockchain-explained-is-it-the-future-of-decentralized-networks">Sui token’s bullish price action</a>.&nbsp;
Wallets associated with the SUI initial coin offering (ICO) have reportedly sold more than $400 million worth of tokens during the rally, according to pseudonymous crypto analyst Light, who <a data-ct-non-breakable="null" href="https://x.com/lightcrypto/status/1845636291460772163/photo/2" rel="nofollow noopener" target="_blank" text="null" title="https://x.com/lightcrypto/status/1845636291460772163/photo/2">posted</a> the information on X on Oct. 14. Light stated:
<blockquote>
 “Insiders (including what is likely a large foundation wallet) have sold $400 million in tokens throughout this run-up, had already begun selling material amounts at much lower prices, and are even accelerating their selling at these more elevated levels.”
</blockquote>
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/sui-charts-115-monthly-gain-and-its-ecosystem-memecoins-rally-after-usdc-integration" rel="" target="_self" text="null" title="https://cointelegraph.com/news/sui-charts-115-monthly-gain-and-its-ecosystem-memecoins-rally-after-usdc-integration">SUI charts 115% monthly gain as its ecosystem memecoins rally after USDC integration</a>
Insiders holding a significant amount of a cryptocurrency’s circulating supply can significantly impact the token’s price. Large-scale selling from these holders can lead to downside pressure.
<figure>
 <img alt="SUI price rally sparks $400M insider selling allegations" src="https://s3.cointelegraph.com/uploads/2024-10/01928aba-2716-7903-a1a5-2552790661a0" title="">
 <figcaption style="text-align: center;">
 Major SUI ICO wallet distribution. Source: Light
 </figcaption>
</figure>
<h2 id="sui-responds-to-allegations">Sui responds to allegations</h2>
In an Oct. 14 <a data-ct-non-breakable="null" href="https://x.com/SuiNetwork/status/1845890142906863865" rel="nofollow noopener" target="_blank" text="null" title="https://x.com/SuiNetwork/status/1845890142906863865">statement</a> posted on the X platform, Sui denied the allegations of insider trading, saying “[i]nsiders have not been involved in any preemptive selling or violation of lockups.”
Sui said the selling may have come from “an infrastructure partner who owns tokens under a lockup schedule.”
“All token lockups are enforced by qualified custodians and continuously monitored by Sui Foundation, and this partner is in compliance,” Sui said.
<figure>
 <img alt="Cryptocurrencies, Investments, return of investment, Trading, Cryptocurrency Investment, SUI" src="https://s3.cointelegraph.com/uploads/2024-10/01928cce-f7c5-70ba-a018-55c4b20d9420" title="">
 <figcaption style="text-align: center;">
 Source: <a data-ct-non-breakable="null" href="https://x.com/SuiNetwork/status/1845890142906863865?t=2d5K6PUJ4DlrYSk2xAVKzw&amp;s=19" rel="nofollow noopener" target="_blank" text="null" title="https://x.com/SuiNetwork/status/1845890142906863865?t=2d5K6PUJ4DlrYSk2xAVKzw&amp;s=19">Sui Network</a>
 </figcaption>
</figure>
<h2 id="more-sui-selling-pressure">More SUI selling pressure?</h2>
The Sui token could see more selling pressure before the end of the month.
On Oct. 23, $114 million worth of Sui tokens — equivalent to 2.32% of the circulating supply — are set to be unlocked. <a data-ct-non-breakable="null" href="https://token.unlocks.app/sui" rel="nofollow noopener" target="_blank" text="null" title="https://token.unlocks.app/sui">According</a> to Token Unlocks data, more than 28% of the total SUI token supply is currently unlocked.
<figure>
 <img alt="SUI price rally sparks $400M insider selling allegations" src="https://s3.cointelegraph.com/uploads/2024-10/01928aba-9569-7672-bc44-b505eb1e3a7b" title="">
 <figcaption style="text-align: center;">
 SUI vesting. Source: Token Unlocks
 </figcaption>
</figure>
Of the total SUI token supply, 14% was allocated to investors, 10% to the Mysten Labs Treasury and 50% to community reserves, <a data-ct-non-breakable="null" href="https://www.coincarp.com/currencies/sui/project-info/" rel="nofollow noopener" target="_blank" text="null" title="https://www.coincarp.com/currencies/sui/project-info/">according</a> to data from Coincarp.
<figure>
 <img alt="SUI price rally sparks $400M insider selling allegations" src="https://s3.cointelegraph.com/uploads/2024-10/01928aba-e123-7a4b-b440-a8eeb3fbbb89" title="">
 <figcaption style="text-align: center;">
 SUI distribution. Source: Coincarp
 </figcaption>
</figure>
Cointelegraph has approached Sui for comment.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/us-election-drives-crypto-prediction-markets-growth-2024" rel="" target="_self" text="null" title="https://cointelegraph.com/news/us-election-drives-crypto-prediction-markets-growth-2024">Prediction markets rise 565% in Q3, fueled by US elections</a>
<h2 id="can-sui-s-rally-continue-despite-the-selling">Can SUI’s rally continue despite the selling?</h2>
While the Sui token could continue its bullish momentum, the large-scale selling raises significant concerns for new investors.
According to Light, there is “only one ending” for tokens where insiders are selling to retail investors. The pseudonymous crypto analyst added:
<blockquote>
 “It does not bring comfort that the people building this ecosystem, the people who arguably know this token’s value best, are unloading hundreds of millions of dollars of the token into less informed buyers chasing momentum.”
</blockquote><iframe width="100%" height="315" src="https://www.youtube.com/embed/P2CJZxeXCIk" frameborder="0" allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>
Is Sui the new SOL? Why you should NOT ignore it. Source: Cointelegraph
The SUI token is up more than 164% year-to-date. Some analysts believe the Sui Network <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/sui-could-be-solana-fiercest-competitor-k33-research" rel="" target="_self" text="null" title="https://cointelegraph.com/news/sui-could-be-solana-fiercest-competitor-k33-research">could become a strong competitor to Solana</a> and emerge as a leading layer-1 blockchain, according to crypto research firm K33. 
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/justin-suns-sui-farming-sins-pepes-wild-run-3acs-oyster-philosophy-asia-express/" rel="" target="_self" text="null" title="https://cointelegraph.com/magazine/justin-suns-sui-farming-sins-pepes-wild-run-3acs-oyster-philosophy-asia-express/">Justin Sun’s SUI-farming sins, PEPE’s wild run, 3AC’s oyster philosophy: Asia Express</a>
Update (Oct. 14 at 8:55 UTC): This article has been updated to include Sui Network’s official response to the insider trading allegations.

SUI price rally sparks $400M insider selling allegations

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