Hyperliquid Labs has finalized the largest over-the-counter (OTC) distribution in the history of its HYPE token, releasing 3.75 million HYPE valued at approximately $330 million. This token release accounts for 1.5% of HYPE’s total supply and forms a significant part of the project’s October allocation schedule.
Major team token release and OTC structure
The distribution followed a week-long unbonding period that started on September 30 and concluded on October 7. During this period, the HYPE tokens remained immobile before being made available for transfer. Of the 3.75 million tokens released, 1.875 million HYPE have been distributed to five buyers through OTC transactions, with each receiving 375,000 HYPE. The remaining 1.875 million tokens from this allocation have not yet been transferred and are pending further action later in October.
OTC transactions are typically used to execute large-scale deals without direct market exposure, reducing immediate price volatility. In this case, the tokens did not enter public exchanges, but were delivered directly to pre-selected counterparties through private agreements.
Iliensinc, a co-founder of Hyperliquid Labs, stated that these transfers are part of an OTC transaction with an institutional buyer, though further details—including the buyer’s identity and the contractual terms—remain undisclosed.
This recent HYPE OTC Distribution eclipses previous team allocations, which ranged between 140,000 and 534,000 tokens per month. The current event, at 3.75 million tokens, represents an 8.65-fold increase compared to earlier releases.
Mini dictionary: Over-the-counter (OTC) transaction, in cryptocurrency, refers to private, direct exchanges of large amounts of tokens between two parties, bypassing public markets to maintain price stability and limit slippage.
| Period | Team Token Distribution | Distribution Method |
|---|---|---|
| Earlier months | 140,000–534,000 HYPE | Vesting/team allocations |
| October 2023 | 3,750,000 HYPE | OTC/private transfer |
Market impact and stakeholders’ outlook
Despite concerns about possible market disruption from such a large release, the price of HYPE remained stable. Activity on the blockchain showed that after initial transfers, some tokens were restaked or moved into different wallets, indicating ongoing internal allocations or preparations for further transfers.
The delayed release of the remaining 1.875 million HYPE means only part of the October team allocation has entered circulation. Previously published vesting schedules had anticipated a nominal 9.9 million HYPE token release for the month, but the actual distribution so far falls well short, a detail seen as noteworthy by market observers.
The OTC approach may have helped mitigate sudden liquidity shocks in public markets, but key details such as sale price, payment terms, and any lock-up conditions have yet to be made public. The anonymous nature of the transaction leaves questions for both investors and market analysts.
The CEO of Hyperliquid Strategies DAT (PURR), David Schamis, publicly denied involvement as a recipient in this OTC transaction: “I’ve said this publicly a few times so I’ll say it again here: this was not us. I don’t know who it is but I’m 100% certain it’s not HypeStrat.”
Market data and ongoing developments
Current on-chain data indicates strong market interest, with HYPE perpetual contract open interest standing at $1.76 billion and 24-hour trading volume reaching $575.5 million. At present, HYPE trades at $87.30.
Market participants are closely watching the remaining scheduled transfers for October, as the pace and scale of further distributions could influence both price and liquidity in the short term. The difference between the 9.9 million HYPE in the vesting schedule and the 3.75 million released so far remains under discussion among HYPE token holders and investors.
