Despite its substantial price gains, the Sui token’s recent triple-digit rally has triggered accusations of insider selling among cryptocurrency investors.
Despite the worries, the SUI token achieved a surge of almost 120% in the last month.
SUI$2.23 increased by more than 120% over the previous month, closing at $2.25 at 10:13 a.m. UTC on October. The token has increased by more than 16% in the last week.
Nevertheless, accusations of insider selling have emerged despite the Sui token’s positive price movement.
A crypto researcher named Moniker Light claims that wallets connected to the SUI initial coin offering (ICO) have purportedly sold tokens valued at over $400 million during the surge. Light shared this information on X on October 14. Light said:
“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.”
An insider’s substantial holdings of a cryptocurrency’s circulating supply can significantly impact the token’s price. Selling in bulk from these holders may put pressure on the downside.
Increased push to sell SUI Token?
Before the month is out, there may be additional selling pressure on the Sui token.
Sui tokens valued at $114 million, or 2.32% of the total amount in circulation, are scheduled to be released on October 23. More than 28% of the SUI token supply is currently unlocked, per statistics from Token Unlocks.
According to Coincarp statistics, 14% of the total supply of SUI tokens was distributed to investors, 10% to the Mysten Labs Treasury, and 50% to community reserves.
Is it possible for SUI to rally despite the selling?
Although there is a chance that the Sui token will continue to gain strength, the widespread selling poses severe questions for potential new investors.
For tokens, Light claims there is “only one ending” in which insiders sell to regular investors. The anonymous crypto analyst continued, saying:
“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.”
To date, the SUI token has increased by over 164%. The Sui Network may emerge as a dominant layer-1 blockchain and pose a severe threat to Solana, according to some analysts, according to crypto research firm K33.