Sui, a layer-1 blockchain platform, is facing scrutiny following allegations that insiders may have profited from a recent surge in the value of its native token, SUI.
Reports have surfaced suggesting that individuals associated with the project may have sold up to $400 million worth of tokens during a significant price increase last month.
In response to these allegations, Sui released a statement clarifying that the wallets in question likely belonged to an infrastructure partner, whose tokens are subject to a lock-up agreement overseen by qualified custodians.
Despite the denial from Sui, doubts within the cryptocurrency community persist. The accusations emerged as SUI’s fully diluted valuation reached $23 billion, a figure that some industry analysts believe is excessive given the project’s current development stage.
While SUI’s price has risen by over 100% in the past month, it experienced a 2.5% decrease on the day of the announcement.
Critics, such as Kyle Samani of Multicoin Capital, have raised concerns about the clarity of Sui’s response, suggesting that it was vague and left room for interpretation regarding who may have benefited from the token sale.
These developments have sparked ongoing questions about the project’s long-term viability and the potential for insider trading.
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