Significant Token Release on the Horizon
Hyperliquid is set to release $314 million worth of tokens on Saturday, marking the perpetual decentralized exchange's most significant tokenomics event to date. This substantial unlock has prompted calls for more transparent communication from the Hyperliquid team regarding its management.
According to Tokenomist data, the platform will release 9.92 million HYPE tokens, which represents 2.66% of the total supply. This allocation will be made available through a cliff unlock, meaning all tokens become accessible simultaneously rather than being released gradually over time.
Community Calls for Clarity Amidst Market Trauma
The upcoming token release has intensified public discussions among token holders. An open letter penned by a community member named Andy has urged the Hyperliquid team to proactively address concerns before the unlock takes place. HYPE is currently trading at $31, a 23% decrease over the past month.
Andy expressed that the impending ability for the team and airdrop recipients to sell their tokens will inevitably cause concern unless direct communication is provided. He highlighted the broader market's negative experiences with venture capital-backed projects that have previously dumped tokens, leading to significant value destruction.
Expert Warnings on Selling Pressure
Arthur Hayes, co-founder of BitMEX, issued a warning regarding the upcoming unlock, stating that it introduces unavoidable selling pressure for the token. He emphasized that even assurances from insiders cannot entirely eliminate the uncertainty surrounding the release.
Hayes elaborated that regardless of any promises made by the team not to sell, there is no binding commitment to enforce such assurances. He advised traders to anticipate some level of daily selling pressure following the token unlock.
He pointed to a notable decline in Hyperliquid's price-to-fully diluted valuation ratio since July as an indicator that traders are already factoring in the forthcoming dilution risk. Hayes suggested that this discount will persist unless revenue growth manages to outpace the increase in supply.
Divergent Community Opinions
However, some members of the Hyperliquid community hold a different perspective, arguing that the team is not obligated to disclose their specific plans for the unlocked tokens. One user stated that providing the allocation amount and timing was sufficient, and the team should retain the discretion to decide internally how to manage their tokens.
Another community member criticized the open letter as an act of desperation and a lack of original conviction. This individual asserted that the Hyperliquid team has demonstrably earned their tokens, especially when contrasted with other projects. Despite a general downturn in the broader cryptocurrency market, perpetual decentralized exchanges (DEXs) have maintained consistent daily trading volumes, ranging from $28 billion to $60 billion in November, according to data from DefiLlama.