The Sui Foundation, the entity behind the recently launched Layer 1 blockchain Sui, denied a series of allegations made a few hours prior by Twitter account “@DefiSquared.”
In a Twitter thread on Monday, DefiSquared claimed to have proof that the Sui team had faked its token emission numbers and had been selling tokens that were not meant to be in circulation on crypto exchange Binance.
My curiosity was piqued last month by SUI's seemingly endless sell pressure. Oddly, CoinMarketCap only showed new emissions a single time each month, from its launchpad. Meanwhile, the SUI team *refuses* to publish a real emissions chart. Odd choice for a legitimate project. 2/ pic.twitter.com/iZIWdPXbd8
— DeFi^2 (@DefiSquared) June 27, 2023
Despite crypto data provider CoinMarketCap showing emissions only once a month, DefiSquared alleged that SUI’s token supply was actually increasing.
“Importantly, this includes emissions from *locked* SUI allocations such as VCs, which are released unlocked and without restriction,” said DefiSquared.
In its own Twitter thread on Tuesday, the Sui Foundation categorically denied these allegations and said the gradual addition of SUI’s token supply was for the purpose of adding liquidity to the ecosystem.
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 team specifically addressed a May 31 transaction shared by DefiSquared who claimed that 2.5 million SUI token rewards were sent to one address, which in turn sent 625,000 SUI tokens to three different wallets. DefiSquared found that these amounts are continuously broken up and disbursed to different wallets, but eventually end up at Binance exchange’s hot wallet.
“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,” said DefiSquared.
According to the Sui Foundation, the transaction in question was a payment subject to a contractual lockup. The team said they would soon publish a detailed projection of the token release schedule.
Soon we will publish a detailed projection of the token release schedule, and will share that link immediately upon publication.
— Sui Foundation (@SuiFoundation) June 27, 2023
Data from TokenUnlocks shows that $43 million of the $6.35 billion locked SUI is scheduled to be released on July 3.
