Significant cryptocurrency investors, often referred to as whales, are liquidating their holdings in Hyperliquid’s native token amid rising concerns over an impending vesting schedule that could release approximately $11 billion worth of supply.
Whale wallet “0x316f” withdrew $122 million in Hyperliquid (HYPE) tokens on Monday, having purchased them at around $12 per token.
This whale experienced approximately $90 million in unrealized profits nine months post-purchase and is likely “selling for profit,” according to blockchain data platform Lookonchain.
The selling activity follows the HYPE token’s surge to an all-time high of $59.29 on Thursday, but it faces its initial significant challenge in November when team tokens begin to vest.
Related: Institutional demand grows with new crypto treasuries and SEC reforms: Finance Redefined
According to the Hyper Foundation, 23.8% of the total supply allocated to core contributors will start unlocking on Nov. 29, marking one year since the project’s genesis event.
The vesting schedule will release approximately $11.9 billion in HYPE tokens over two years for the team, representing what could be the “first true test” for the token’s resilience, BitMEX co-founder Arthur Hayes’ family office fund, Maelstrom, stated on Monday.
Describing it as a “Sword of Damocles” moment, it will result in around $500 million worth of monthly unlocks, with only about 17% expected to be absorbed through buybacks, leaving an estimated $410 million in potential supply overhang, according to Maelstrom researcher Lukas Ruppert.
Related: ‘Diamond hand’ investor turns $1K into $1M as BNB tops $1,000
Hayes sells HYPE stash for Ferrari ahead of vesting schedule
The research from Maelstrom was released shortly after Hayes divested all his HYPE tokens, reportedly utilizing the funds to cover the deposit on a new Ferrari, Cointelegraph reported earlier on Monday.
“Need to pay my deposit on the new Rari 849 Testarossa,” Hayes noted on Sept. 21.
Other whales seem to be redirecting their investments to Hyperliquid’s emerging competitor, Aster, a decentralized perpetuals exchange associated with Binance co-founder Changpeng Zhao.
On Monday, whale address “0x220” acquired $10.5 million in Aster tokens across two wallets and is reportedly holding over $6 million in unrealized profits, according to Lookonchain’s Monday X post.
In the last week, the Aster token surged by over 1,700%, propelling it to become the fourth-largest DEX token in the sector with a market capitalization of $2.5 billion.
During the same period, the HYPE token experienced a decline of 7.9%, trading at $49.34 at the time of writing, as per CoinMarketCap data.
Magazine: Altcoin season 2025 is almost here… but the rules have changed
