Originally published on: October 14, 2024
The recent surge in the price of the Sui token has raised red flags among cryptocurrency investors, with claims of insider selling swirling despite its impressive gains.
SuiSUI has experienced an extraordinary increase of over 120% in the last month, reaching $2.25 as of 10:13 am UTC on Oct. 14. The token has seen a 16% increase in the past week, according to data from Cointelegraph.
However, concerns about insider selling have emerged amid the Sui token’s bullish performance.
Reports suggest that wallets linked to the SUI initial coin offering (ICO) have offloaded more than $400 million worth of tokens during the rally. This information was shared by pseudonymous crypto analyst Light on X on Oct. 14, highlighting the potential impact of significant selling pressure from insiders on the token’s price.
Insiders holding a substantial portion of a cryptocurrency’s circulating supply can exert influence on its value. The imminent unlock of $114 million worth of Sui tokens on Oct. 23, equivalent to 2.32% of the circulating supply, may further contribute to selling pressure, according to Token Unlocks data.
The distribution breakdown of the SUI token reveals that 14% was allocated to investors, 10% to the Mysten Labs Treasury, and 50% to community reserves, as reported by Coincarp.
While the Sui token continues its upward trajectory, concerns persist for new investors in light of the substantial selling by insiders. Analysts warn that such activity could have negative implications for retail investors.
Despite its impressive 164% year-to-date gain, questions loom over the SUI token’s future. Some believe that the Sui Network could emerge as a formidable competitor to Solana and establish itself as a prominent Layer-1 blockchain, according to insights from crypto research firm K33.
As the SUI token garners attention, the issue of insider selling remains a contentious topic in the cryptocurrency space. Stay informed on the latest developments in the world of decentralized finance by subscribing to the Finance Redefined newsletter. Receive weekly updates on DeFi trends, insightful analysis, and new financial opportunities to guide your decision-making process.
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