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- Hyperliquid Labs has begun distributing 3.75 million HYPE tied to an institutional over-the-counter agreement after the token's unstaking period ended.
- On-chain data shows half of the allocation moved through five addresses, with 1.25 million HYPE subsequently returned to staking.
- The institutional buyer, OTC purchase price, and potential reselling restrictions have not been disclosed publicly.
Hyperliquid Labs has begun distributing 3.75 million HYPE tied to an institutional over-the-counter agreement after the token’s seven-day unstaking period ended.
HYPE traded near $87.07 on Oct. 8, down 4.32% over 24 hours and 2.1% over seven days. The allocation was worth about $330 million when the arrangement emerged, but that figure is not the disclosed OTC purchase price.
The tokens are moving through a private deal rather than directly through public exchange order books, and available data does not establish that the distribution caused HYPE’s price decline.
Half of 3.75M HYPE Allocation Moves Through Five Addresses
On-chain Lens tracked 1.875 million HYPE moving from the allocation across five addresses, with each initially receiving 375,000 tokens. Those transfers represented half of the 3.75 million HYPE covered by the private agreement.
Later activity showed that the five addresses were not necessarily separate buyers. About 1.25 million HYPE, worth roughly $110 million, was subsequently returned to staking.
Another 1.875 million HYPE remained in one address, while 625,000 HYPE was held in another wallet. The movements do not identify the final buyer or confirm that any tokens were sold.
Seven-Day Unstaking Period Ended Around October 7
Hyperliquid Labs began moving the tokens out of staking around Sept. 30. Hyperliquid requires an exact seven-day waiting period when HYPE moves from a staking balance to a spot balance, placing completion around Oct. 7.
The latest transfers began after that period ended, making the tokens available for distribution. The allocation comes from HYPE reserved for core contributors, which received about 23.8% of the original one billion-token supply.
Institutional Buyer and OTC Purchase Price Remain Undisclosed
Hyperliquid co-founder iliensinc previously said the full 3.75 million HYPE allocation was covered by an OTC agreement with an institution.
The buyer, purchase price and any restrictions on reselling the tokens have not been disclosed publicly. Hyperliquid Strategies CEO David Schamis ruled out his company as the buyer on Oct. 8.
Further wallet movements could show whether more of the allocation returns to staking or moves elsewhere, but on-chain activity alone cannot identify the institution behind the transaction.
