30s Summary
The Sui token rose over 120% in a month to $2.25, amid concerns about insider selling. Wallets linked to Sui’s ICO reportedly sold over $400m worth of tokens as prices surged. This large-scale selling could bring the token price down given their substantial control of the circulating supply. Another $114m worth of Sui tokens could be sold this month. Despite these concerns, some experts believe the Sui Network could become a top Layer-1 blockchain, outweighing Solana. However, new investors may be wary due to the significant insider selling.
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The Sui token has recently seen a huge increase in value, jumping more than 120% over the past month to reach a price of $2.25. However, despite this impressive growth, some crypto investors are raising concerns about insider selling.
In fact, it seems that wallets linked to the Sui initial coin offering (ICO) have sold over $400 million worth of tokens during this surge in value. The anonymous crypto analyst who reported these figures, known as Light, noted that insiders have accelerated their selling efforts as prices have risen.
Owning a big chunk of a cryptocurrency’s circulating supply can influence the token’s price, and large-scale selling from these insiders could bring the price down.
Moreover, it’s anticipated that more Sui tokens could be sold before the end of the month. On October 23rd, around $114 million worth of Sui tokens, or about 2.32% of the circulating supply, are predicted to be unlocked and could thus potentially be put up for sale.
Regarding the total available Sui tokens, 14% were given to investors, 10% to the Mysten Labs Treasury, and 50% to community reserves.
Despite the potential challenges, the Sui token could potentially still continue its growing trend. However, the amount of insider selling may raise concerns for new investors. Specifically, Light points out that it’s disconcerting to see insiders selling massive amounts of tokens to the less informed masses.
Up to this date, the SUI token’s value has risen by over 164% this year. Some experts think that the Sui Network could potentially become a serious contender to outrun Solana, eventually becoming a top Layer-1 blockchain.
Source: Cointelegraph