Hyperliquid’s native token, HYPE, will face one of the year’s largest key releases on October 6th. According to Tokenomist data, approximately 3.75 million HYPE will be released.
The tokens, currently worth approximately $337 million at the time of writing, represent 1.69% of the existing free supply. The expansion will reportedly be funded from the allocation reserved for Hyperliquid’s key contributors.
However, not all 3.75 million HYPE tokens are expected to be sold directly on exchanges. Hyperliquid Labs has reportedly reached an agreement to sell these tokens to a single institutional buyer via an over-the-counter transaction.
Tokens Will Not Be Entered into the Order Book
Conducting the transaction outside of an exchange could prevent hundreds of millions of dollars worth of HYPE from being suddenly put up for sale on publicly available order books. This is a significant detail that could mitigate direct selling pressure in the short term.
However, the identity of the institutional buyer, the price paid for the tokens, and whether any mandatory holding period was applied were not disclosed. Therefore, there is no known definitive obstacle preventing the buyer from subsequently sending the tokens to exchanges.
*This is not investment advice.
Not sure about your trading skills and want to learn how crypto market trading works? I can guide you step by step, helping you build a better understanding of the market and make informed trading decisions.
If you’re interested in learning more about crypto trading, feel free to contact me for guidance and support.
MY TELEGRAM 👉( TudorJones)…..
MY WHATSAPP 👉 (+1 3049873290)
An institutional buyer sounds like a company that will offer them in one or several products they will be setting up. Such as an ETF. What other reason does an institutional buyer make such purchases?