SUI token has increased by more than 120% in the last month, reaching $2.25 as of October 14. This outstanding performance has increased SUI’s popularity among investors. However, some investors started to be cautious as there were allegations of insider selling behind this rise.

SUI token rose 4.2% from $62,450 to $65,090 on October 14. It also increased by 16% in the last week. However, in the shadow of this bull market, allegations have emerged that wallets linked to SUI’s initial coin offering (ICO) sold more than $400 million in tokens in the process.

Light, a pseudonymous crypto analyst, stated in his post on the X platform that insiders (most likely including a foundation wallet) sold significant amounts during this rise.

“Insiders sold $400 million worth of tokens during this rally,” Light said. “They had already started selling significant quantities at much lower prices, and they are accelerating the pace of selling at these higher levels,” he said, drawing attention to the seriousness of the situation.

At this point, it was emphasized that large-scale sales by insiders could create downward pressure on the price of the token. It is predicted that SUI token may face more selling pressure by the end of the month.

On October 23, $114 million worth of tokens are expected to be released, equivalent to 2.32% of the circulating supply of the SUI token. According to Token Unlocks data, more than 28% of the total SUI token supply is currently free.

14% of the total supply was allocated to investors, 10% to the Mysten Labs Treasury, and 50% to community reserves. This may cause fluctuations in the price of the SUI token.

Even though the SUI token is up over 164% year-to-date, insider selling is causing concern for new investors. Light criticized this situation, saying “there is only one end” for tokens that insiders are selling to retail investors.

In this context, he emphasized that investors should be more careful. “It’s not comforting that the people who built this ecosystem, the people who know the value of this token best, are dumping hundreds of millions of dollars of tokens into less-informed buyers looking for momentum,” he said.

On the other hand, some analysts think that Sui Network has the potential to compete with strong rivals, especially Solana. Crypto research firm K33 has positive views that Sui Network could become a leading Layer-1 blockchain in the future.

At this point, how the SUI token will perform in the future and how insider sales will affect the sustainability of this rise are among the issues that investors should follow carefully.