- SUI token surges to new heights, outperforming major cryptocurrencies.
- Concerns arise about insider selling and overvaluation.
- Sui Foundation denies insider selling allegations and clarifies token lockups.
The SUI token’s phenomenal surge to the top 15 crypto currencies has been overshadowed by concerns about its valuation and the potential impact of insider selling. In response, the SUI Foundation denied allegations of selling $400 million. It clarified that the possible owner of the wallet is the infrastructure partner, who owns the tokens according to the lock-up period.
The token’s market capitalization has skyrocketed, raising questions about whether its underlying fundamentals justify its current value. Market observers have spotted a large foundation wallet, that has reportedly sold hundreds of millions of dollars worth of SUI tokens during the recent price surge. Although the token has garnered much attention, its fully diluted valuation [FDV] of only $1.2 billion compared to Solana’s $4.7 billion raises eyebrows. This suggests that SOL might be significantly undervalued, especially considering its FDV is just a third of ETH’s.
Additionally, detailed revelations about the Foundation’s wallet holding substantial amounts of the tokens have added another layer of complexity to the narrative. While some see this as a positive sign, others question the foundation’s intentions.
SUI Token: Caution Ahead as TD Sequential Flashes Sell Signal
Following the allegation, the Sui Foundation has clarified that there are no insiders including employees of the Foundation or Mysten Labs, who have sold $400 million worth of tokens during this period. The likely owner of the wallet is an infrastructure partner who owns tokens under a lockup schedule. Lastly, all token lockups are enforced by qualified custodians and continuously monitored by the Foundation, ensuring compliance.
Despite its recent surge, the token is showing signs of potential weakness based on the TD Sequential indicator. This technical analysis tool has accurately predicted SUI’s trend on the weekly chart in the past, and its current sell signal suggests that a downward price movement may be imminent.
While SUI’s meteoric rise is impressive, the concerns surrounding insider selling and valuation need to be addressed. The foundation’s response to the allegations provides some clarity but does not adequately address concerns about potential conflicts of interest. Investors should closely monitor the token’s price action and consider potential risk mitigation strategies.
