Sui Foundation Denies Selling Locked Staking Rewards on Binance

The Sui Foundation – the team behind the Sui Network and its native SUI token – has denied allegations that the firm unlocked SUI staking rewards and “dumped” them on cryptocurrency exchange Binance.

Foundation Knocked Back Claim A five-part Twitter thread on June 27 stated that none of the locked or non-circulating tokens, including SUI staking rewards, had been sold:

“The 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 will be subject to and in compliance with their lock-up and other restrictions on transfer,” the foundation said.

The purpose of this communication is to share information about the tokenomics of the SUI network, including the SUI token supply and certain distributions of SUI tokens. Here is what you need to know:

– Needle Foundation (@SuiFoundation) 27 June 2023

Needle is a decentralized proof-of-stake blockchain. Users can stake their SUI tokens to participate in its Proof-of-Stake mechanism in exchange for more SUI. There is no minimum wagering period requirement.

Sui’s recent rebuttal was in response to the pseudonymous crypto commentator’s claims. @DeFiSquared June 27 in Twitter ThreadWhere he accused the Sui Foundation of “dumping rewards from locked* and *non-circulating* staked SUI on Binance”.

Exclusive new research on SUI:

Deliberately Misrepresented Emissions and Evidence The team itself is dumping rewards from SUI containing *locked* and *non-circulating* stakes onto Binance. (1/12) pic.twitter.com/jYRyeTFY56

— DeFi^2 (@DefiSquared) 27 June 2023

While Sui said that specific transactions were subject to “contractual lockup,” DeFi Square said that SUI tokens can be unlocked “without restrictions.”

The DeFi-focused pundit claimed that the Sui Foundation’s wallet address, “0x341f”, transferred 3.125 million of the total 27 million SUI rewards to three different addresses, which were then transferred to Binance.

The specific transaction in question was a payment subject to a contractual lockup.https://t.co/ViYxQoJMos

– Needle Foundation (@SuiFoundation) 27 June 2023

DeFi Square claimed that this process happened several times before “most” of it ended on Binance:

“While the amounts are split at times, the majority of it ultimately ends up on Binance. This could be either to obscure the sale, or perhaps because it is being split between different team members. But regardless, most of it is eventually going to Binance.”

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Commentator Said Their “curiosity peaked” due to SUI’s “seemingly endless selling pressure” in May, while failing to publish a separate emissions chart from Binance’s Launchpad, which was allegedly not legitimate. Specifically, he claimed that the Foundation is increasing the supply of SUI tokens for non-Foundation token holders by almost 20% month-on-month:

“This is higher than the inflation rate of the highly inflated Venezuelan bolivar in 2022.”

Sui’s blockchain is designed to provide users with high transaction throughput at low fees, According To Mysten Labs, makers of Sui Foundation.

The SUI token currently has a market capitalization of $427.7 million with a circulating supply of approximately 604 million tokens. According To Coinmarketcap. At the time of publication SUI is trading at $0.70, down 2.4% over the past 24 hours.

Sui Foundation Said It will soon publish a “detailed launch” of its token release schedule.

The next unlock of 61 million tokens ($43 million) is scheduled for June 3rd. According Tokenomics Dashboard for Token Unlock.

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