As the crypto market continues to show mixed price actions, Hyperliquid's development team, Hyperlabs, stirred reactions across the crypto market following a recent unlocking of $HYPE tokens.
According to recent data shared by crypto analytics platform Lookonchain, Hyperlabs has unlocked a total of 433,025 $HYPE tokens and has been dumping them on major crypto exchanges.
Is Hyperlabs selling?
Following $HYPE's current trading price, the total amount of tokens unlocked by the team is worth over $23 million, drawing attention from market watchers.
Although the massive unlocking of the tokens does not reflect a bearish signal, the move became concerning after the team began to deposit portions of the unlocked tokens to exchanges like OKX and Flowdesk.
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While deposits to exchanges potentially indicate an intention to sell, the move has sparked speculation across the crypto community, although the team has yet to give further details about the purpose of its move.
With the move perceived as being bearish for $HYPE's potential price move, it appears that momentum is cooling after the rapid price surge seen earlier this week.
$HYPE supply pumps
By unlocking some of the Hyperliquid tokens into circulation, the team has added to the supply of $HYPE available in the market and could create additional selling pressure amid the ongoing market volatility.
Nonetheless, there are suggestions that the team may not have sold the tokens it unlocked, as exchange deposits do not solely confirm that Hyperlabs has sold the assets.
Market analysts predict that there is a good chance the team may have deposited the tokens for liquidity management or other operational purposes.
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