SUI Foundation Respond To $400 Million Insider Selling Allegations: What Does it Mean For SUI Crypto Price?

Crypto Analyst ‘LightCrypto’ has alleged insider selling by SUI Foundation, but what does this mean for SUI crypto and SUI price Price Trading volume in 24h Last 7d price movement ?

The foundation posted on X yesterday (October 14), saying that no such activity had occurred from someone within the foundation or its core contributor, Mysten Labs.

‘Following an allegation of “Sui insiders selling $400M in tokens throughout this run-up,” Sui Foundation would like to respond directly to this individual: No insiders, neither employees of the Foundation or Mysten Labs (including Mysten Labs founders), nor ML investors, have sold $400M worth of tokens during this period, either individually or combined,’ the Sui team said on their social media post.

Following an allegation of “Sui insiders selling $400M in tokens throughout this run-up,” Sui Foundation would like to respond directly to this individual:

1. No insiders, neither employees of the Foundation or Mysten Labs (including Mysten Labs founders), nor ML investors,…

— Sui (@SuiNetwork) October 14, 2024

Allegations Came From Crypto Analyst ‘LightCrypto’ After Year-Long Absence

The allegations came from a notable crypto analyst, Lightcrypto .

After being silent on social media for nearly a year, he returned on Monday with claims that “insiders” had sold $400 million worth of Sui during the token’s recent price surge .

Lightcrypto identified wallets linked to the Sui initial coin offering as insiders. However, specific wallet addresses were not included in the post.

“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,” said Light.

In the same tweet, the crypto analyst questioned Sui’s claim to be the next Solana.

“First, buying SUI here at a $23B FDV [fully diluted valuation] under the fundamental view that it can follow in Solana’s footsteps no longer seems tenable. It now trades at a quarter of Solana’s valuation,” Light continued.

“Can anyone really lay out the case that, on a relative basis, this makes any sense whatsoever from a risk-reward perspective anymore? Has SUI really shown a quarter of the potential of Solana?”

One thing that I've found more and more baffling in the last few weeks is the vertical ascent of SUI, with it quintupling off the lows (Ex 1). The market is starved for winners, and believes it has found one here, yet it all feels awfully chintzy for two reasons that I think feed… pic.twitter.com/VKISXpdxp1

— light (@lightcrypto) October 14, 2024

DISCOVER: Hawk Tuah Girl Launching Her Own Coin? Are We Really Heading For A Meme Coin Super Cycle?

Sui Foundation Claim That Wallet Responsible For Selling $400 Million SUI Could Be An ‘Infrastructure Partner’

The Sui Foundation finished its response to Lightcrypto by stating that although he never provided a wallet address, they believe the $400 million worth of Sui tokens sold could be owned by an infrastructure partner.

“While the poster did not provide the wallet address, we believe the likely owner of the wallet is 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,” claimed the rebuttal from the SUI Foundation.

Many speculators have responded negatively to Sui’s post, believing that an ‘infrastructure partner’ selling nine figures worth of Sui tokens still constitutes insider trading.

Guys it wasn’t insider selling it was ‘compliant’ insider selling.

— Bold (@boldleonidas) October 14, 2024

What Do These Allegations Mean For $SUI? Bullish Or Bearish?

$SUI is so overheated right now; I wouldn't touch it with a stick.

This is not entry territory. pic.twitter.com/IUJwlUA9tR

— Patric H. | CryptelligenceX (@CryptelligenceX) October 15, 2024

After a strong 30-day performance that saw SUI price climb over +107%, investors wonder how the token responds to these insider trading allegations.

Right now, it looks overbought, with a bearish RSI divergence of around 59, coupled with its EMA20 level of around $2.

These insider trading claims could catalyze a much-needed cool down after a month of up only for SUI price.

(TRADINGVIEW)

For an entry, it would be wise to keep an eye on the aforementioned EMA20 level (around $2), which would also clear the RSI bearish divergence. If SUI fails to hold the EMA20 level, potential buyers’ next point of interest would be at the EMA50 level, around $1.6 – an alluring opportunity for those with FOMO.

If SUI crypto gets its reset, we can use Fibonacci levels to evaluate potential price targets. $2.19, $3.33, and $5.16 represent Fib levels 1, 1.618, and 2.618, respectively.

BONUS: Crypto All-Stars Blasts Past $2.3 Million In Presale Funding With Its Revolutionary Meme Vault Technology

 

Crypto All-Stars ($STARS) has now blasted past the $2.3 million through its presale with smart investors all wanting a piece of its Meme Vault technology.

Meme Vault is an all-in-one staking platform for the most popular meme coins on the market. For the first time ever, investors can put their meme coin portfolio to work, staking SHIB, DOGE, WIF, PEPE, and many more, all within the Meme Vault platform.

Rewards for staking in the Meme Vault will be paid out in STARS, with rewards multiplied for those already holding STARS in their wallet.

To top it off, the Crypto All-Stars team has included a staking protocol for the presale stage. Investors can earn over 630% APY by staking their STARS purchased during the presale phase.

Crypto All-Stars can be bought using ETH, BNB, USDT, or credit and debit cards. Be quick if you want to purchase the STARS token. The next price stage increase begins in less than 24 hours.

VISIT CRYPTO ALL-STARS HERE

EXPLORE: Shiba Shootout: The New Meme Coin Sensation Explained

Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.