The Sui Foundation has refuted claims that it sold locked and non-circulating staked SUI tokens on the cryptocurrency exchange Binance.
Accusations were made against Sui, alleging that they dumped SUI staking rewards on Binance.
Sui Foundation Takes to Twitter to Deny Selling Locked Staking Rewards and Tokens
However, the team behind the Sui network and its native SUI token took to Twitter to address these allegations. In a comprehensive five-part thread posted on June 27, the Sui Foundation stated that no locked or non-circulating tokens, including SUI staking rewards, had been sold:
“Sui Foundation has not sold staking rewards or any other tokens from locked and non-circulating staked SUI on Binance or otherwise.”
The foundation further emphasized that all insider token allocations are bound by lock-up periods and other transfer restrictions.
Sui is a decentralized proof-of-stake blockchain where users can stake their Sui tokens to engage in the proof-of-stake mechanism and earn additional SUI. There is no minimum staking duration.
The Sui Foundation’s response comes in light of allegations made by a pseudonymous crypto commentator known as DeFiSquared. In their Twitter thread on June 27, DeFiSquared accused the Sui Foundation of “dumping rewards from locked and non-circulating staked SUI” on Binance.
While Sui argued that the transactions were subject to a “contractual lockup,” DeFiSquared claimed that the SUI tokens could be unlocked “without restriction.”
Sui Foundation’s Wallet Transfers 3.125 Million SUI Tokens to Binance, Alleges DeFiSquared
DeFiSquared alleged that the Sui Foundation’s wallet address, “0x341f,” transferred 3.125 million SUI tokens, out of a total of 27 million staking rewards, to three different addresses, ultimately reaching Binance.
According to DeFiSquared, this process occurred repeatedly, with the majority of the tokens ending up on Binance. They suggested that this could be an attempt to hide the selling or that the tokens were being divided among team members.
In an unrelated report, it was revealed that over $204 million was lost in DeFi hacks and scams during Q2, highlighting the need for vigilance in the decentralized finance sector.
DeFiSquared expressed concern in May regarding SUI’s seemingly constant selling pressure. They criticized the lack of a separate emissions chart from Binance’s launchpad, suggesting that it was not legitimate. Furthermore, they claimed that the Sui Foundation was inflating the supply of SUI tokens by approximately 20% per month for non-foundation token holders, a rate exceeding the hyperinflation of the Venezuelan Bolivar in 2022.
Mysten Labs, the creators of the Sui Foundation, stated that Sui’s blockchain aims to provide users with high transaction throughput at low fees.
Currently, the SUI token has a market capitalization of $427.7 million, with approximately 604 million tokens in circulation, as reported by CoinMarketCap. At the time of writing, SUI is trading at $0.70, reflecting a 2.4% decrease in the past 24 hours.
The Sui Foundation has announced its intention to release a detailed schedule for token unlocks soon. The next unlock, scheduled for June 3, will involve 61 million tokens ($43 million), according to the tokenomics dashboard Token Unlocks.