Sui, the layer-one blockchain offering industry-leading performance and infinite horizontal scaling, has made headlines due to allegations of $400 million in insider token sales.
Corrections and clarifications have been made regarding the earlier report on a massive insider token dump from the SUI Foundation, which was based on an on-chain analyst's observations.
The foundation has refuted the claims made by the anonymous on-chain sleuth, who goes by the handle @lightcrypto on Twitter. The analyst had raised concerns about the possibility of insiders selling $400 million in tokens during the recent surge in SUI's value.
However, according to the foundation's clarification, no insiders, including employees of Mysten Labs or investors in the company, sold any tokens during the period in question. The foundation also stated that no early token sales took place and that all stakeholders adhered to the agreed-upon lockup schedules and circulating supply rules.
The foundation further clarified that the wallet in question likely belongs to an infrastructure partner whose tokens are subject to lockup and are not available for sale.
The analyst had observed that when insiders sell tokens to retail investors, the outcome is usually negative. He expressed concern that it is troubling when the people who built the ecosystem and likely have the best understanding of the token's true value are selling off hundreds of millions of dollars' worth of tokens to less informed buyers who are simply chasing market momentum.
Meanwhile, SUI, the native cryptocurrency of the blockchain, hit a new all-time high of $2.34 on October 13, 2024. Another significant development is the introduction of native USDC on the SUI network.
This launch enables the creation of a broader range of financial products within the DeFi sector, allowing users to access digital dollar savings without relying on traditional banking systems.
While USDC is now natively integrated, there is no need for bridging solutions such as Wormhole, which previously facilitated seamless cross-chain transactions.
These trends indicate that Sui is positioning itself as a strong competitor to established platforms like Solana. The network's capacity to attract such high levels of activity and investment reflects growing confidence among users and investors in its long-term potential. As of now, the SUI token is trading at $2.23, just 4.30% shy of its all-time high of $2.34.
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