The Sui network and its native SUI token have faced allegations of unlocking and “dumping” SUI staking rewards on Binance, but the team behind the project has vehemently denied these claims.
In a series of tweets on June 27, the Sui Foundation refuted the accusations and stated that no staking rewards or other tokens from locked or non-circulating staked SUI were sold on Binance or any other platform.
The foundation emphasized that all insider token allocations adhere to the lock-up periods and transfer restrictions set forth in their contracts.
Sui operates as a decentralized proof-of-stake blockchain, allowing users to stake their SUI tokens in exchange for more SUI through the proof-of-stake mechanism.
Unlike some other platforms, Sui does not impose a minimum staking period.
The foundation’s denial came in response to claims made by a pseudonymous crypto commentator known as DeFiSquared on Twitter.
DeFiSquared alleged that the Sui Foundation had been transferring staking rewards from locked and non-circulating SUI to Binance without any restrictions.
While Sui argued that the transactions were subject to contractual lock-ups, DeFiSquared argued that the SUI tokens could be unlocked without limitations.
DeFiSquared further claimed that the Sui Foundation’s wallet address, “0x341f,” transferred 3.125 million SUI tokens in staking rewards to three separate addresses, which eventually ended up on Binance after multiple transfers.
They speculated that this process was done to obscure the selling or potentially distribute the funds among team members.
The commentator also raised concerns about SUI’s sell pressure and alleged that the foundation was inflating the token supply by approximately 20% per month for non-foundation token holders.
Sui’s blockchain aims to provide users with high transaction throughput at low fees, as outlined by Mysten Labs, the creators of the Sui Foundation.
At the time of writing, the SUI token has a market capitalization of $427.7 million, with approximately 604 million tokens in circulation.
Its current trading price is $0.70, reflecting a 2.4% decline in the past 24 hours.
The Sui Foundation has announced its intention to release a detailed projection of the token release schedule soon.
According to the tokenomics dashboard Token Unlocks, the next unlock of 61 million tokens ($43 million) is slated for June 3.
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