1.75m Hyperliquid Tokens Unlocked Today, But Was The Price Impacted?

The Hyperliquid development team provided clarity on Saturday's token unlock in response to community fears of increased selling pressure.

The team behind the Hyperliquid decentralized exchange (DEX) disclosed a 1.75 million HYPE token unlock for its developers and core contributors on Saturday, valued at over $60.4 million at the time of this writing.

Saturday’s token unlock was previously announced and is part of HYPE’s vesting schedule, according to pseudonymous Hyperliquid developer iliensinc, who celebrated the first anniversary of Hyperliquid’s historic airdrop and token generation event. He said:

The unlock sparked fear about potential selling pressure that could impact HYPE’s market price, which declined by about 4.6% at the time of this writing.

Hyperliquid’s airdrop and token generation event was considered a landmark debut in the crypto industry that changed product launches, by touting a community-focused model, rewarding early adopters, developers, and users, as opposed to venture capitalists.

Related: Trader torches $3M to punch a $5M hole in Hyperliquid’s vault

“Even if the team pinky swears to not sell, there is nothing holding them to that,” founder of the BitMEX crypto exchange and market analyst Arthur Hayes said.

HYPE token holders must expect a non-zero chance of daily selling pressure, which has already been priced in by the market, reflected in HYPE’s decline since September, Hayes added.

The price of HYPE has declined by about 42% from its all-time high of about $59.40, reached in September, and is trading well below its 200-day moving average, a critical support level.

HYPE started falling on September 19, before the historic market crash in October that wiped away up to 95% in value from certain altcoins.

Source: CoinTelegraph