Hyperliquid Labs completes the unstaking of 3.75 million HYPE tokens, valued at $330 million, marking its largest distribution to date. Co-founder iliensinc confirms the transaction is part of an over-the-counter deal with an undisclosed institutional counterparty. Half of the tokens are distributed evenly among five buyer wallets, while some are subsequently restaked. The OTC structure helps prevent immediate public market selling pressure, and HYPE's price rises following the news.
Timeline of the token unstaking
- ▪Hyperliquid Labs completed unstaking 3.75 million HYPE tokens, valued at approximately $330 million, on October 7, 2026
- ▪Hyperliquid Labs initiated the unstaking process on September 30, 2026, with a seven-day unbonding period before the 3.75 million HYPE tokens became transferable
Scale of the token distribution
- ▪The 3.75 million HYPE tokens unstaked by Hyperliquid Labs represent approximately 1.5% of the circulating supply of the HYPE token
- ▪The unstaking of 3.75 million HYPE tokens on October 7, 2026, represents the largest token distribution in the history of the HYPE token
- ▪The October 2026 unstaking of 3.75 million HYPE tokens is approximately 8.65 times larger than prior monthly distributions, which typically ranged between 140,000 and 534,000 HYPE
Details of the over-the-counter agreement
- ▪Hyperliquid Labs co-founder iliensinc confirmed that the 3.75 million HYPE token distribution by Hyperliquid Labs is tied to an over-the-counter agreement with an undisclosed institutional counterparty
- ▪Under Hyperliquid Labs' over-the-counter agreement, 1.875 million HYPE tokens were distributed evenly among five buyer wallets, with each wallet receiving 375,000 tokens
Over-the-counter agreement terms
- ▪The over-the-counter structure of Hyperliquid Labs' HYPE token distribution prevents immediate selling pressure on public exchange order books by routing tokens directly to institutional buyers
- ▪Investors cannot view the lockup conditions, pricing, or resale restrictions for Hyperliquid Labs' $330 million October 2026 over-the-counter HYPE token distribution
Debatable claims
- ▪Concentrating HYPE tokens in undisclosed institutional wallets undermines the project's decentralization
- ▪Hyperliquid's massive HYPE distribution poses an unacceptable risk to token stability
- ▪Hyperliquid should disclose the lockup terms of its HYPE OTC distribution
- ▪OTC routing is an effective way to protect HYPE holders from unlock-induced selloffs
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