As a seasoned analyst with over two decades of experience in the financial markets, I have seen my fair share of bull runs and market manipulations. The recent surge of Sui (SUI) has caught my attention, but not without raising some red flags.
In the past few days, the significant surge of over 100 points in the value of the Sui token has led some cryptocurrency investors to accuse others of illicitly profiting from insider information, even though the token’s price increase has been substantial.
Switzercoin (SUI) experienced a surge of more than 120% during the last month, currently trading at $2.25 as of 10:13 am UTC on October 14. The token has also increased by approximately 16% in the past week based on CryptoMoon’s data.
However, allegations of insider selling have arisen despite the Sui token’s bullish price action.
During the recent surge, wallets linked to the SUI Initial Coin Offering (ICO) are said to have sold over $400 million worth of tokens, as reported by an anonymous crypto expert known as Light, who shared this information on X on October 14th. In simpler terms, Light mentioned that a significant amount of tokens from the SUI ICO were sold for approximately $400 million during the rally.
“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.”
A substantial number of insiders owning a particular cryptocurrency’s available tokens can have a considerable influence on the token’s value. If these owners decide to sell in large quantities, it could create a strong pull towards lower prices.
More SUI selling pressure?
The Sui token could see more selling pressure before the end of the month.
On October 23rd, approximately $114 million in Sui tokens (representing 2.32% of the current circulating supply) will be released. As per Token Unlocks data, over 28% of the total SUI token pool is already unlocked and available.
As an analyst, I’ve uncovered the distribution of the total SUI token supply. Investors were given 14%, the Mysten Labs Treasury received 10%, while a significant 50% was set aside for community reserves, as per the data from Coincarp.
CryptoMoon has approached Sui for comment.
Can SUI’s rally continue despite the selling?
As the Sui token maintains its upward trend, widespread selling by experienced investors may create doubts among potential newcomers.
As a researcher, I’ve observed from Light’s analysis that when insiders are selling cryptocurrencies to retail investors, it seems to lead to a single conclusive scenario. Furthermore, the anonymous crypto expert has emphasized this point by stating that there appears to be only one probable outcome in such instances.
“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.”
The SUI token is currently up over 164% year-to-date (YTD).
The SUI cryptocurrency has surged by over 164% so far this year. Some experts predict that the Sui Network might challenge Solana’s position and potentially lead among the top Tier-1 blockchains, as suggested by the crypto analysis firm K33.
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2024-10-14 14:43