Sui Denies $400M Token Sale Came from Foundation or Investors

Sui addressed accusations on Monday related to the alleged sale of $400M worth of SUI by insiders during a price surge last month.

What's the scoop?

• Insider Selling Allegations: A claim emerged on Twitter that insiders, including a wallet linked to the foundation, sold tokens during the recent price increase.
• Sui's Response: The company denied the allegations, stating that neither its team, Mysten Labs, nor investors sold tokens. 
• Wallet in Question: Sui suggested the wallet belonged to an “infrastructure partner” with tokens under lockup, monitored by custodians.

Bankless Take:

Given Sui’s nascency and its strong outperformance these last few months, the chain must be careful how it navigates this, as the lack of clarity could strongly undermine confidence, leaving users to weigh the risks as the blockchain's valuation grows. Further, given that Sui was one of the two chains to raise huge funding at the end of last cycle, it already has an uphill battle in overcoming the “VC” allegations of being a chain with a higher chance of cashing out at the expense of retail holders. That being said, it’s done a great job of building a community thus far that it can protect by being proactively transparent and providing more clarity into which “infrastructure partner” sold the tokens.