Following the pool of allegations, Sui Foundation promised to share a "detailed projection of the token release schedule."
The Sui Foundation, developers of the innovative Sui network and its proprietary SUI token, has firmly dismissed allegations of unlocking and selling SUI staking rewards on the renowned cryptocurrency exchange, Binance.
Sui Foundation's vehement denial was shared in a detailed five-part Twitter thread on June 27th.
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In its Twitter thread, the organization outlined that it did not engage in selling any locked or non-circulating tokens, specifically SUI staking rewards:
Sui Foundation has not sold staking rewards or any other tokens from locked and non-circulating staked SUI on Binance or otherwise. All insider token allocations remain subject to and compliant with their lock-ups and other restrictions on transfer.
This rebuttal was made in response to accusations levied by an anonymous crypto commentator, @DeFiSquared. On June 27th, the crypto enthusiast took to Twitter to claim that the Sui Foundation was selling rewards from "locked" and "non-circulating" staked SUI on Binance.
Notably, the Sui network utilizes a decentralized proof-of-stake blockchain mechanism, allowing users to stake their Sui tokens to participate and earn additional SUI. It is worth noting that the network saw the daylight at the beginning of May 2023.
A Twitter user claimed that the Sui Foundation’s wallet address, “0x341f,” transferred 3.125 million of the total 27 million SUI staking rewards to three different addresses. These tokens were then supposedly moved to Binance. This process, the commentator claimed, happened several times until the majority of it ultimately reached Binance:
While the amounts are split many times, most of it ends up at Binance eventually. This could either be to obfuscate the selling, or perhaps because it is being split between different team members. But regardless, most of it is reaching Binance in the end.
Interestingly, the commentator's skepticism about SUI was evoked in May due to the token's “seemingly endless sell pressure” and the Sui Foundation's alleged failure to publish a legitimate emissions chart separate from Binance’s launchpad.
Furthermore, Twitter user accused the foundation of inflating the SUI token supply by approximately 20% each month for non-foundation token holders, a rate they compared to the hyperinflation of the Venezuelan Bolivar in 2022.
In the aftermath of the allegations and the subsequent public interest, the Sui Foundation has committed to releasing a "detailed projection" of the token's release schedule soon.
At the time of writing, Sui (SUI) retails for $0.7090, recording a 5.21% price decrease in the last 24 hours.
The Sui Foundation denied allegations of selling staking rewards on Binance while maintaining full compliance with the restrictions on their token transactions. This incident underscores the importance of transparency in token management, a principle the Sui Foundation plans to uphold in the upcoming token release projections.
