Hyperliquid News Today: Hyperliquid Token Release: Contributor Incentives and Holder Concerns

Hyperliquid Releases 1.75 Million HYPE Tokens to Developers, Prompting Market Jitters

On November 29, 2025, Hyperliquid, a prominent decentralized exchange, distributed 1.75 million HYPE tokens to its core team and developers. This token release, valued at over $60.4 million at the time, immediately sparked concerns among investors about potential sell-offs and downward price pressure. The event was part of a previously announced vesting plan, as shared by the pseudonymous developer iliensinc, and coincided with a 4.6% drop in HYPE’s price, intensifying worries about the token’s stability and overall market sentiment.

Tokenomics and Vesting Details

According to in-depth reports, Hyperliquid’s token distribution allocates 23.8% of its total 1 billion HYPE tokens to insiders and key contributors. The vesting schedule features a one-year lock-up period, followed by a gradual release over three years. While this latest unlock is significant, it is much smaller than the massive 270 million token airdrop that occurred in November 2024, which was valued at $9.5 billion at that time. Notably, Hyperliquid has never conducted external fundraising, reinforcing its image as a community-led project. However, the recent token release has reignited debates around transparency and project governance.

Market Analysis and Price Trends

Industry observers, including BitMEX co-founder Arthur Hayes, noted that the possibility of increased selling had already been factored into the market. Hayes remarked, “Even if the team promises not to sell, there’s nothing preventing them from doing so.” Since reaching an all-time high of $59.40 in September, HYPE’s price has fallen by 42% and is now trading below its 200-day moving average, a critical technical support level. Additional indicators, such as a 34 RSI and negative Chaikin Money Flow, point to ongoing bearish momentum. Analysts caution that if HYPE closes below $35.50, it could trigger a broader sell-off.

Community Response and Platform Performance

Reactions within the Hyperliquid community have been divided. Some members have called on the team to proactively address investor concerns, while others argue that the token unlock is a justified reward for the project’s contributors. An open letter from X user Andy described the emotional strain previous unlocks have placed on holders, highlighting a 23% monthly price decline amid a wider market downturn. Supporters, however, emphasize Hyperliquid’s strong position in the decentralized perpetual trading sector, with the platform handling $259 billion in trading volume over the past month and maintaining $6.3 billion in open interest, even as prices have fallen.

Unique Blockchain Model and Future Outlook

Hyperliquid operates on a proprietary Layer 1 blockchain, setting it apart from conventional decentralized exchanges by offering transparent order books and high transaction throughput. The HYPE token plays a central role in governance, staking, and fee reductions, making it a focal point for both utility and volatility. The latest unlock highlights the ongoing challenge of balancing long-term value with short-term market reactions, especially as the project seeks to maintain community trust while incentivizing contributors.

Looking forward, the crypto community will be watching to see if Hyperliquid can maintain its trading activity and revenue growth. Arthur Hayes suggested that only substantial increases in revenue could counteract the uncertainty caused by the expanded token supply. With HYPE currently trading 46% below its peak and regulatory pressures mounting across the crypto industry, Hyperliquid’s upcoming decisions are likely to be pivotal for its future in the competitive world of decentralized trading.