Another coin hits an all-time high this week, but its dizzying ascent has left some wondering and asking questions. SUI, the native coin of the SUI Network, briefly hit an all-time high of $2.35 on October 13th, continuing its impressive surge in the last 30 days. Holders now realize a 100% gain on this coin during this period, unofficially making it the 22nd largest crypto in market capitalization at $6.1 billion.
Based on CoinGecko tracking, the coin’s value has increased by over 440% since last year. While SUI’s impressive surge has made plenty of holders happy, its price action has raised a few eyebrows.
Analysts Question SUI’s Rapid Price Surge
An on-chain analyst named Light questioned the sudden spike in SUI’s price. In a Twitter/X post, the analyst explained that the coins were sold at a much lower price and an accelerated level during SUI’s surge.
One thing that I’ve found more and more baffling in the last few weeks is the vertical ascent of SUI, with it quintupling off the lows (Ex 1). The market is starved for winners, and believes it has found one here, yet it all feels awfully chintzy for two reasons that I think feed… pic.twitter.com/VKISXpdxp1
— light (@lightcrypto) October 14, 2024
Light noticed that the SUI Foundation had sold over $400 million coins throughout its surge. He further explains that insiders “were probably” behind the selling pressure.
In addition to the coin’s recent price spike, he also questioned SUI’s current market valuation. Using the coin’s new highs, it trades at a quarter of Solana’s market valuation. Light asks: has the SUI Network demonstrated even a quarter of Solana’s potential?
SUI market cap currently at $6.18 billion. Chart: TradingView.com
SUI Foundation Issues A Clarification
The analysts’ questions have sparked a lively debate in the crypto community and forced the Foundation to release a statement. In a statement, the SUI Foundation directly answered the questions and dismissed the allegations.
Following an allegation of “Sui insiders selling $400M in tokens throughout this run-up,” Sui Foundation would like to respond directly to this individual:
1. No insiders, neither employees of the Foundation or Mysten Labs (including Mysten Labs founders), nor ML investors,…
— Sui (@SuiNetwork) October 14, 2024
In a Twitter/X post dated October 15th, 2024, the SUI Foundation answered the issue on two counts: First, the Foundation shared that no insiders or employees of Mysten Labs have sold $400 million worth of SUI coins.
There was no preemptive selling or violations of lockup arrangements. Second, it identified the supposed wallet, which was likely owned by an infrastructure partner who owns the crypto under a lockup schedule. The statement further explains that custodians and the Foundation monitor coin lockups.
Image: VRITIMES
SUI Price Correction, Analysts Raise Concerns
Despite the Foundation’s clarifications, debates and questions within the crypto community continue. As Light has argued, while its current price approximates a quarter of Solana’s valuation, it has no demonstrated potential. Some market analysts even noted the sudden price surge, with some raising concerns.
As expected, SUI’s price immediately corrected, dropping by 2%. According to Martinez, various technical analyses, including the TD Sequential indicator, indicate a sell signal. And in the short term, many analysts say that SUI could drop even further by 43%.
Featured image from TOP1 Markets, chart from TradingView