Urgent Hyperliquid HYPE Token Sell-Off: Whales Exit Ahead of Vesting, Arthur Hayes Sells for Ferrari

The crypto market often sees significant shifts. Currently, the Hyperliquid HYPE token is at the center of attention. Large investors, often called crypto whales, are actively selling their holdings. This trend emerges amidst growing concerns over a substantial upcoming vesting schedule. This schedule could unleash billions of dollars in new supply, creating market pressure. Furthermore, prominent figures like Arthur Hayes have also exited their positions, adding to the market’s unease.

Massive Crypto Whale Withdrawal Signals Caution

A significant crypto whale recently initiated a major withdrawal from Hyperliquid. On Monday, a wallet identified as “0x316f” pulled out $122 million worth of Hyperliquid HYPE tokens. This investor had held these tokens for nine months. The acquisition cost was approximately $12 per token. This whale was sitting on an impressive unrealized profit of about $90 million. Blockchain data platform Lookonchain suggested the whale is likely “selling for profit.” This move follows a rally where the HYPE token reached a new all-time high of $59.29 on Thursday. However, the token now faces its first major market test.

The Looming Hyperliquid HYPE Token Vesting Schedule

The primary concern for the Hyperliquid HYPE token is its upcoming vesting schedule. This event marks a critical juncture for the token’s stability. According to the Hyper Foundation, 23.8% of the total supply is allocated to core contributors. This portion will begin unlocking on November 29. This date is exactly one year after the project’s genesis event. This vesting schedule will distribute approximately $11.9 billion worth of HYPE tokens. The distribution will occur over 24 months for the team. This event may represent the “first true test” for the token’s resilience.

Maelstrom, the family office fund of BitMEX co-founder Arthur Hayes, highlighted this situation. They dubbed it a “Sword of Damocles” moment. Maelstrom researcher Lukas Ruppert estimates monthly unlocks of about $500 million. Only around 17% of this amount will be absorbed by buybacks. This leaves a potential supply overhang of about $410 million each month. Such an influx could exert significant downward pressure on the HYPE token price.

Arthur Hayes Exits Hyperliquid HYPE Token Holdings

The research from Maelstrom followed a notable personal move by Arthur Hayes. Hayes, a respected voice in the crypto community, recently sold all his HYPE tokens. He reportedly used these funds to pay the deposit for a new Ferrari. “Need to pay my deposit on the new Rari 849 Testarossa,” Hayes stated on September 21. The Ferrari 849 Testarossa is expected to sell for up to $590,000. Crypto News Insights previously reported on Hayes’s sale. His exit, coinciding with his fund’s warning, sent a clear signal to the market. It suggests a cautious outlook ahead of the significant vesting event.

The Rise of the Aster Token as a Competitor

Amidst the concerns surrounding the Hyperliquid HYPE token, other whales are exploring alternatives. Some appear to be shifting their focus to Aster, an emerging competitor. Aster is a decentralized perpetuals exchange. It has links to Binance co-founder Changpeng Zhao. On Monday, whale address “0x220” purchased $10.5 million worth of Aster tokens. These purchases were spread across two wallets. The whale currently holds over $6 million in unrealized profit from these acquisitions. This indicates growing confidence in Aster’s potential.

The Aster token has shown remarkable growth recently. Over the past week, its value surged by more than 1,700%. This impressive rally propelled Aster to become the industry’s fourth-largest DEX token. Its market capitalization now stands at $2.5 billion. In contrast, the HYPE token experienced a 7.9% decline during the same period. It traded at $49.34 at the time of writing, according to CoinMarketCap data. This stark contrast highlights a potential shift in investor sentiment within the decentralized exchange sector. Investors are clearly evaluating new opportunities and risks.