Arthur Hayes Sells Entire HYPE Token Holdings
Arthur Hayes, co-founder of BitMEX, sold all his Hyperliquid (HYPE) tokens for about $823,000. Hayes initially joked that the money would buy a Ferrari. He later explained the sale was due to heavy sell pressure from large token unlocks starting November 29.
Blockchain data from HypurrScan, highlighted by Lookonchain, shows Hayes sold 96,628 HYPE tokens at a 19.2% profit on September 21.
Hayes posted on X, joking about needing to pay a deposit on a new Ferrari. The sale came a month after he predicted HYPE could grow 126 times in three years. He later shared an article titled “HYPE’s Damocles Sword” explaining the sale. Hayes reassured followers that the token’s long-term potential remains strong, noting 126x growth by 2028 is still possible.
HYPE Token Faces Upcoming Unlock Challenge
HYPE is the native token of Hyperliquid, a decentralized derivatives exchange (DEX). The token has seen strong growth but dropped about 9% in the past 24 hours to $48.90. According to CoinMarketCap, trading volume surged 136% to $552 million.
Trading activity increased sharply in August, rising from $560 million to a record $3.4 billion on August 24, per DefiLlama.
However, analyst Maelstrom warned of a major challenge. Starting November 29, 237.8 million HYPE tokens will vest over 24 months. At $50 per token, this equals about $11.9 billion in team unlocks. This adds nearly $500 million in new supply monthly, potentially creating a $410 million monthly supply overhang.
Even large decentralized autonomous trusts (DATs) like Sonnet, holding $583 million in HYPE and $305 million in cash, may cover only a small part of these unlocks.
Hayes’ Sale Reflects Personal Decision, Not Market Outlook
Hayes’ sale highlights a personal financial move, separate from overall market trends. It is unclear if he plans to reinvest in HYPE.
Hayes has a history of bold predictions. Earlier this month, he forecasted Bitcoin would surpass $200,000, arguing that traditional four-year halving cycles no longer control the market. He also suggested U.S. Treasury liquidity measures could push crypto markets into an “up only” phase.
While Hayes’ sale is notable, it does not necessarily reflect HYPE’s long-term prospects. Investors should consider market trends, trading volumes, and the volatile nature of crypto before making decisions.
