Hyperliquid Token Unlock Puts $314M At Risk As Transparency Fears Rattle Traders

Core Insights - Hyperliquid is facing scrutiny due to a $314 million token unlock, which raises concerns about transparency, market stability, and tokenomics management [1] - The unlock will release 9.92 million HYPE tokens, representing 2.66% of the total supply, in a single "cliff unlock" [1] Community Concerns - The token unlock has sparked discussions within the Hyperliquid community, with some users expressing unease due to a month-long decline in HYPE, which has dropped over 23% [2] - An open letter from a community member urged the team to communicate with holders before the unlock, highlighting emotional scars from past unlock events [3] Market Reactions - BitMEX co-founder Arthur Hayes noted that the market is already pricing in dilution risk, as indicated by Hyperliquid's declining price-to-fully diluted valuation ratio since July [4] - Some community members believe the team is not obligated to disclose plans for the unlocked tokens, arguing that the allocation amount is sufficient [4] Diverging Opinions - While some labeled the open letter as "desperation," others defended the contributors' right to their share, emphasizing Hyperliquid's strong performance and high trading volume [5] Market Performance - HYPE has struggled to maintain bullish momentum, down 14.2% in the past week and over 22% in the last 14 days, currently trading nearly 46% below its all-time high of $59.30 [6]