Hyperliquid Labs Begins $330 Million HYPE OTC Distribution,…
By Karthik Subramanian
AI summary of the source article
Hyperliquid Labs has commenced the distribution of 3.75 million HYPE tokens valued at approximately $330 million under an over-the-counter agreement with an undisclosed institutional buyer. Onchain tracking showed an initial batch of 1.875 million tokens transferred across five wallets after completing a seven-day unstaking process. These tokens were subsequently consolidated, with roughly 1.25 million HYPE returned to staking rather than sent directly to exchanges. The actual release of 3.75 million tokens is smaller than the 9.9 million nominal figure cited on some vesting calendars, and the private OTC structure minimizes immediate public order-book disruption.
Why it matters
Executing the token release through a private OTC transaction prevents immediate selling pressure on public exchanges, while early restaking suggests part of the allocation will remain locked out of active circulation.
Key facts
- Hyperliquid Labs initiated the OTC distribution of 3.75 million HYPE tokens valued at approximately $330 million.
- Half of the allocation, or 1.875 million HYPE, was initially transferred to five wallets, with about 1.25 million tokens subsequently restaked.
- Hyperliquid Strategies CEO David Schamis publicly denied that his firm was the buyer in the transaction.