Recent rumors about the Sui Foundation allegedly selling over $400 million worth of SUI tokens have caused a stir. Despite an official denial, the token's price has dipped by 2%.

Details of the Sale Allegations

Crypto analyst @lightcrypto alleges that wallets linked to the Sui Foundation have been selling SUI tokens worth $400 million over the past months. The analyst claims that a specific address withdrew 82.6 million SUI tokens, valued at approximately $184 million, from staking since late June, supposedly transferring them to major exchanges like OKX, Binance, and Bybit in small, frequent transactions.

Sui Foundation’s Official Response

In response to the accusations, the Sui Foundation took to social media platform X to firmly reject these claims: "There has been no insider selling by the Foundation, Mysten Labs employees, or investors. All sales have adhered to the planned token circulation schedule, and no pre-set rule violations have occurred." Additionally, the Foundation clarified that the address mentioned by Lightcrypto is not affiliated with the Foundation or its members, suggesting the transactions might be related to infrastructure partners whose token lock-ups have expired.

Current SUI Price and Future Outlook

SUI, the native token of the Sui blockchain platform, peaked at $2.34 on Monday before facing selling pressure following the news. Analyst Ali Martinez warns investors about new positions in SUI, citing the TD Sequential indicator, which signals a potential 43% price correction. However, the Sui network activity remains robust, with on-chain trading volume around $200 million and Total Value Locked (TVL) reaching $1.13 billion.

The Sui Foundation’s statement has alleviated some concerns. Despite denying insider sales, investors remain cautious. Market dynamics and continuing rumors may impact SUI's price in the near term.