The SUI foundation has denied allegations that it unlocked SUI staking rewards and dumped them on Binance. The foundation cleared all misunderstandings through a Twitter thread and clarified that none of the locked or circulating tokens, including all staking rewards, were sold out. The foundation stated that all insider tokens still remain compliant with their lockups, as well as other restrictions on transfer.
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.
— Sui Foundation (@SuiFoundation) June 27, 2023
The foundation also made it evident that a detailed projection of the token release schedule would be made public very soon. SUI is a proof-of-stake blockchain that allows users to stake their tokens in hopes of earning more tokens via active participation in the mechanism. However, no minimum staking period is required for the users as well.
The Allegations Against SUI
The foundation mentioned that a specific number of transactions were subject to a collateral lockup, but the SUI tokens could be unlocked without any possible restrictions. DeFi Squared claimed that the wallet address, ‘0x341f’, transferred approximately 3.125 million of the total 27 million of the token rewards to three separate addresses.
It is argued that these were, later on, transferred to Binance. DeFi Squared alleged that the process was repeated a few times before a greater percentage of the staking rewards ended up on Binance. The DeFi platform highlighted how the transfers to Binance mean the same thing even if it refers to obfuscating the selling or splitting it between a number of team members.
However, SUI added,
‘Soon we will publish a detailed projection of the token release schedule, and will share that link immediately upon publication.’
The masses have stated that their interest increased as a result of SUI’s endless selling pressure in May this year. It occurred because of the platform’s failure to publish an emissions chart separate from Binance’s launchpad, which was not deemed to be legitimate. These analysts claim that the foundation is inflating the supply of the token by approximately 20% on a monthly basis for non-foundation token holders.
Over the course of the previous 24 hours, the SUI token has considerably declined by approximately 4.99%, and the decline has pushed the trading price down to almost $0.6825. At the same time, the total market cap of the token currently stands at the $412 million mark.