The price of SUI has come under significant pressure following rumours of insider selling tied to the Sui Foundation. Despite an impressive 104% rally over the past month, recent claims from crypto analyst @lightcrypto have cast a shadow over the token’s performance. According to the analyst, suspicious wallet activity revealed that over 82.6 million SUI tokens, worth approximately $184 million, were redeemed and transferred from wallets allegedly linked to the Foundation.
Insider Trading Concerns: Is SUI Following Suit?
The issue of insider trading is becoming increasingly prevalent in the crypto world, raising concerns that SUI might be the latest to fall victim to this trend. Many are questioning the integrity of the transactions, but the Sui Foundation has provided clarity.
Sui Foundation’s Clarification
In response to the insider selling rumours, the Sui Foundation took to the X platform to refute the claims. They assured the public that no insiders, including employees, founders, or investors from the Foundation or Mysten Labs, had sold $400 million worth of tokens during the price rally.
The Foundation explained that any redeemed tokens likely belonged to infrastructure partners complying with lock-up periods. They also criticized @lightcrypto for failing to specify the addresses involved in the transactions, warning that this lack of transparency could lead to confusion.
SUI Price Reaction and Market Impact
Despite the Foundation’s clarification, SUI’s price dropped by 2%, even as the broader market saw gains. After hitting an all-time high of $2.34 on October 14, the token has struggled under the weight of these allegations. Market analysts, including Ali Martinez, have raised red flags for investors.
Martinez pointed out that the TD Sequential indicator, a tool known for accurately predicting SUI price movements, is flashing a call signal. This suggests that the price may face further downward pressure, with some predicting a potential decline of up to 43%.
Network Activity on the Rise
Interestingly, while SUI’s price is facing challenges, the Sui blockchain is witnessing a surge in network activity. This is primarily driven by the growing popularity of meme coin trading, which has boosted engagement on the platform.
Data from DeFiLlama shows that on-chain trading volume has reached $200 million, and Sui’s total value locked (TVL) has surged to an all-time high of $1.13 billion. This influx of capital highlights the blockchain’s growing market presence, even as its token faces scrutiny.