Arthur Hayes Sells $5.1M HYPE Tokens Amid Future Supply Concerns

Arthur Hayes, co-founder of BitMEX and head of the crypto venture fund Maelstrom, sold his holdings of Hyperliquid's HYPE tokens shortly after predicting a significant potential increase in value.

Key Details

Hayes sold 96,628 HYPE tokens for about $5.1 million, securing a profit of approximately $823,000 (19%) within a month.
He humorously confirmed the sale on X, mentioning it was to fund a luxury car purchase, which led to criticism from traders who felt he promoted HYPE before selling.
Hayes defended his decision by citing concerns from Maelstrom, asserting that significant gains are still possible in the long term.

Supply Concerns

Maelstrom highlighted an upcoming large token release: starting November 29, 237.8 million HYPE will vest over two years, introducing nearly $500 million worth of tokens monthly into circulation.
This unlock could total $11.9 billion at current prices, with Maelstrom estimating Hyperliquid's buyback program can absorb only 17% of this new supply.
The firm expressed concerns about the market's ability to handle this influx and noted the risk of early developers and insiders selling their vested allocations.

Long-term Outlook

In a previous blog post, Hayes compared Hyperliquid to a "decentralized Binance," suggesting HYPE could significantly increase in value by 2028, based on factors like a potential $10 trillion stablecoin market.
Despite the recent sale, Hayes maintains his long-term optimistic view, describing the upcoming token unlock as a challenge but not a definitive setback.
Hyperliquid continues to be a key player in decentralized perpetual futures, with its HYPE token crucial for governance, staking, and fee distribution.