Recently, the price of the Sui token on the Move language public chain has been soaring, and many people feel that it has the flavor of replicating the trend of TON in the first half of the year. However, analyst @lightcrypto revealed on Twitter that during the period when the token price was almost vertically rising, the Sui Foundation has quietly sold out $400 million worth of tokens. This inference is consistent with the findings of several Korean local media and professors in the past few months. However, this claim was later refuted by the foundation, who stated that the address should belong to a partner, not the foundation itself.
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ToggleSui FDV has reached one-fourth of Solana, analysts suspect there is a significant premium
@lightcrypto said that what has puzzled him the most in the past few weeks is that SUI has risen five times from the bottom price of $0.45, and then he began to examine the token's fundamentals, saying: "Given that the fundamentals suggest that SUI can follow in the footsteps of Solana, buying SUI at a $23 billion FDV no longer seems to stand. Its current trading price is one-fourth of Solana's valuation. Can anyone really prove that SUI has one-fourth of Solana's potential?"
He then mentioned the issue of the foundation's dumping, stating: "Insiders (possibly a large foundation wallet) have already sold $400 million worth of tokens during the entire upward trend, and have begun to sell a large amount of tokens at prices below the market price." He believes that these insiders, who are the ones most familiar with the token's value, are dumping billions of dollars worth of tokens through information asymmetry to retail investors.
Korean professors and media unanimously point out that Sui has dumping activities
Professor @clayop from Hansung University in Korea noticed this phenomenon as early as last August, when he stated that 0x7f3b9 received 310 million tokens from the foundation address 0x341fa on June 16th. Then, the staking rewards of 1.3 million SUI were deposited into Binance through 0xbe90d.
Coincidentally, Korean media has also revealed that 95 million SUI tokens were indirectly transferred to Upbit through Binance, OKX and Bithumb.
Researcher defioasis.eth also compiled all the associated addresses in this incident on Twitter.
Sui Foundation responds to the dumping incident, pointing the spearhead at the partner
Subsequently, the Sui Foundation also responded to the entire incident on Twitter, stating:
1. During this period, no insiders, the Foundation, or Mysten Labs employees (including Mysten Labs founders) or Mysten Labs investors have sold $400 million worth of tokens. Insiders have not participated in any dumping or violated the lock-up period and circulating supply plan.
2. Although the poster did not provide wallet addresses, we believe the wallet may belong to an infrastructure partner who owns tokens under the lock-up plan. All token lockups are executed by qualified custodians and continuously monitored by the Sui Foundation, and this partner is compliant.
The author believes that in both traditional finance and cryptocurrencies, as long as the token dumping is done in compliance with regulations, it is reasonable (although cryptocurrency dumping is not legally supervised). Because many startup workers are paid in tokens/stocks, not fiat currency. Just like Huang Renxun, Musk, and the Ethereum Foundation have dumped currencies multiple times, the only thing to note is that we often consider the timing of these insiders' exits to be extremely precise.
