In a recent series of Twitter posts, the team behind Sui Network and its native SUI token refuted claims that they had unlocked SUI staking rewards and then “dumped” them on cryptocurrency exchange Binance.
According to the foundation, the Sui Foundation has not been involved in any transactions involving rewards or other tokens from locked or untraded SUI on Binance or any other platform.
Furthermore, Sui has confirmed that all internal token assignments are subject to and comply with lockout agreements and other transfer restrictions. This confirmation aims to allay concerns surrounding the unauthorized transfer of coins.
Allegations of dumping and unauthorized transfers
The allegations surfaced when a pseudonymous crypto commentator, DeFiSquared, posted a thread on Twitter on June 27, accusing the Sui Foundation of dumping rewards from locked and non-traded SUI on Binance.
The individual suggested that the SUI tokens held in the Sui Foundation wallet address were moved to multiple addresses, and eventually found their way to Binance. DeFiSquared claimed that this process occurred multiple times, indicating a possible pattern of token dumping.
While the Sui Foundation stated that specific transactions are subject to contractual lockouts, DeFiSquared argued that SUI tokens can be unlocked without restrictions, leading to their potential transfer. The commentator speculated that these tokens may have been divided among team members or transferred to Binance to disguise their selling activities.
DeFiSquared was curious aroused at first in May when they noticed what they saw as continued selling pressure on SUI tokens. They also alleged that the Sui Foundation failed to publish a separate emission chart from the Binance Launchpad, and questioned its legality.
Furthermore, the commentator claimed that the Sui Foundation is inflating the supply of the SUI token by about 20% per month for non-foundation token holders, comparing this inflation rate to that of the Venezuelan bolivar in 2022.
(embed) https://www.youtube.com/watch?v=IFHZMPrtpXI (/embed)
Sui Network, a decentralized proof-of-stake blockchain, is designed to provide users with high transaction throughput at low fees. It is owned by Mysten Labs, creators of the Sui Foundation confirmed These features are part of its value proposition.
At the time of writing, the SUI token boasts a market capitalization of $410 million, with approximately 604 million tokens in circulation, according to CoinMarketCap. Moreover, SUI is trading at $0.67, reflecting a decline of 6.67% in the past 24 hours.