Should you be afraid of the unlocking of $HYPE for $1.2 billion?
On September 29, 14.17 million $HYPE will be unlocked, accounting for 1.4% of the total supply and 2.7% of the market capitalization. This is a standard monthly unlock, similar to ones that have happened before.
The $1.2 billion that will be unlocked will be distributed among the main participants, the community, and the Hyper Foundation. And, as usual, the market starts getting nervous.
What could happen?
The fact of the unlock itself is likely to prove, again, less significant than expected. Historically, the team allocates a very small portion. In addition, there are buyback and staking mechanisms.
The real risk lies in positioning around this unlock. The price is at its historical high, and the promise of a listing on Kraken (regulated futures via HL) still has no specific date, and recently the system added the ability to obtain loans against $HYPE through a lending platform.
With an LTV (Loan-to-Value) of 65%, loans issued against $HYPE will be liquidated already after the price falls by about 21%. A sudden drop could, in theory, trigger a cascade reaction of liquidations.$HYPE
On September 29, 14.17 million $HYPE will be unlocked, accounting for 1.4% of the total supply and 2.7% of the market capitalization. This is a standard monthly unlock, similar to ones that have happened before.
The $1.2 billion that will be unlocked will be distributed among the main participants, the community, and the Hyper Foundation. And, as usual, the market starts getting nervous.
What could happen?
The fact of the unlock itself is likely to prove, again, less significant than expected. Historically, the team allocates a very small portion. In addition, there are buyback and staking mechanisms.
The real risk lies in positioning around this unlock. The price is at its historical high, and the promise of a listing on Kraken (regulated futures via HL) still has no specific date, and recently the system added the ability to obtain loans against $HYPE through a lending platform.
With an LTV (Loan-to-Value) of 65%, loans issued against $HYPE will be liquidated already after the price falls by about 21%. A sudden drop could, in theory, trigger a cascade reaction of liquidations.$HYPE
