Originally published on: October 14, 2024
The recent surge in the value of the SUI token has raised concerns among cryptocurrency enthusiasts regarding alleged insider selling, despite the token’s impressive performance.
SUI has experienced a remarkable increase of over 120% in the last month, reaching $2.25 as of 10:13 am UTC on Oct. 14. The token has also seen a 16% boost in the past week, based on data from Cointelegraph.
While the price of SUI continues to climb, suspicions of insider selling have emerged within the cryptocurrency community. Reports indicate that wallets linked to the SUI initial coin offering (ICO) have sold more than $400 million in tokens during this rally. This information was brought to light by the pseudonymous crypto analyst, Light, who shared the details on X platform on Oct. 14.
Insiders holding a significant portion of a cryptocurrency’s circulating supply can have a notable impact on its price movement. The large-scale selling from these holders can create downward pressure on the token’s value.
As more than $114 million worth of SUI tokens, representing 2.32% of the circulating supply, are set to be unlocked on Oct. 23, additional selling pressure is anticipated before the end of the month. Current Token Unlocks data reveals that over 28% of the total SUI token supply is currently unlocked and available for trading.
The distribution of the SUI token sees 14% allocated to investors, 10% to the Mysten Labs Treasury, and 50% to community reserves, as per data from Coincarp.
While the SUI token has shown significant gains of over 164% year-to-date, the concerns surrounding insider selling raise red flags for potential investors. Analysts warn that tokens witnessing such behavior could lead to unfavorable outcomes for retail investors.
Despite the positive performance of the SUI token, the allegations of insider selling highlight the importance of conducting thorough research before investing in any cryptocurrency. Stay informed to make informed decisions in the volatile world of digital assets.
