The team behind the Hyperliquid decentralized exchange (DEX) unlocked 1.75 million HYPE tokens for developers and core contributors, valued at over $60.4 million. There are no investor unlocks as the project never raised external capital. The unlock sparked fear of potential selling pressure, leading to a 4.6% price decline.

Hyperliquid’s airdrop and token generation event marked a community-focused model, rewarding early adopters and users. Despite the team’s promise not to sell, market analyst Arthur Hayes warned of potential selling pressure. HYPE token holders should expect daily pressure, as seen in the 42% decline from its all-time high in September.

HYPE’s price action showed a steady uptrend, reaching an all-time high in September before falling. The token dropped by 54% during the October market crash but rebounded to $40 within two days. Hyperliquid has been praised for handling $330 billion in monthly trading volume with a small team.

Read more at Cointelegraph: Hyperliquid Team Confirms 1.75M HYPE Tokens Unlocked Today