Crypto Funds Queue Nearly $150M in HYPE Tokens for Withdrawal
Vexoda Newsroom
HYPE token experienced a brief decline of about 8% after crypto funds initiated large unstaking events. The withdrawal queue, totaling nearly $150 million, dwarfs the daily spot market turnover.
In recent trading sessions, HYPE's price briefly fell by approximately 8%, hitting local lows as significant token withdrawals were queued up for processing. This movement was driven primarily by three major crypto funds: Multicoin Capital, Selini Capital, and Galaxy Digital, which collectively queued nearly $150 million worth of tokens.
Multicoin Capital alone held a substantial stake in HYPE, amounting to around $138.78 million, with approximately 83% ($116 million) set for withdrawal within the next five to seven days. Selini Capital and Galaxy Digital contributed further by queuing up tokens worth roughly $4.4 million and $29.4 million respectively.
The impact of these large-scale withdrawals was exacerbated by a related event where a Multicoin-linked wallet deposited around 167,000 HYPE to Coinbase, potentially signaling an intention for eventual sale into the market. However, key figures like Tushar Jain from Multicoin Capital have denied any direct selling intentions.
The withdrawal queue dwarfs daily spot turnover in the HYPE market. Block Liquidity data indicates that over 28 hours leading up to Wednesday morning, only $72.8 million was traded, with far fewer buyers than sellers. This suggests a thin and volatile market environment where large-scale withdrawals can significantly impact token prices.
The broader implications for traders lie in the uncertainty surrounding these massive unstaking events. While some believe that the tokens will be redeployed into new HIP-3 markets or used to support other projects, others fear potential selling pressure could lead to further price volatility.
Going forward, market participants are closely monitoring upcoming unlock dates and the actions of key stakeholders. The July 28th unlock remains a critical point for observing how funds will be reallocated in light of recent HIP-3 developments.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.