Hype Whales Load Up Amid Hyperliquid Insider Trading Controversy
Crypto whales are making a bold bet on the HYPE token amid the prevailing controversy surrounding Hyperliquid’s alleged insider trading. Despite the chaos, two whales emerged as major players, with a combined deposit of $5 million USDC into Hyperliquid.
This significant move has sparked a heated debate in the crypto space, with many wondering about the whales’ motive. While this investment signals the holders’ confidence in the token, it is not clear if it would be enough to wipe off the negative sentiment surrounding HYPE.
Hyperliquid Whale Activity Sparks Market Interest
According to on-chain analyst Lookonchain’s post on X, two cryptocurrency whales or large holders have deposited a total of $5 million USDC into Hyperliquid. This move, executed within a 2-hour span, indicates the whales’ potential plans to buy more HYPE tokens. This significant accumulation suggests that these large investors are betting big on HYPE, increasing their holdings.
Notably, the current holdings of these whales are substantial. Specifically, address 0xDAeF currently holds 214,497 HYPE tokens, worth about $5.44 million. At the same time, address 0x3300 boasts 102,460 tokens, valued at approximately $2.61 million. In addition, both addresses hold a significant amount of USDC, which indicates that their HYPE purchases are likely to be continued.
Interestingly, market participants are noticing these whales’ activities, especially monitoring their possible future HYPE purchases. Some of the community members believe that this calculated approach suggests smart money is betting big on HYPE’s potential. They added that the calm accumulation could be the precursor to a significant price surge.
Meanwhile, others consider it as the whales’ tactic to build a long-term position on the HYPE token. While the whales are preloading USDC to buy the Hyperliquid token in a series of purchases rather than a single large-scale buy, it indicates their long-term strategy.
Hyperliquid Confirms Insider Trading Allegations
In a recent development that has sparked widespread speculations. Hyperliquid has confirmed that a wallet address accused of shorting the HYPE token belonged to a former employee of the company. The accused was terminated in Q1 2024.
Significantly, the wallet, identified as 0x7ae4…1028, had been flagged by the community for suspicious activity. These included selling HYPE tokens through Time-Weighted Average Price-style selling. The community had suspected that the wallet address belonged to an insider or a team member, based on its significant holdings and transactions around the token launch date.
Hyperliquid’s confirmation on the matter has sparked discussions over the reasons behind the post-launch selling pressure. Some of the community members accused insiders of offloading the tokens. These allegations have raised concerns about market manipulation and the potential impact on the token’s price.
HYPE Token’s Bearish Sentiment Breaks, Positive Signals Emerge
The allegations surrounding HYPE token’s insider trading and Hyperliquid’s confirmation have had a significant negative impact on the altcoin. However, the whales’ bullish move has sparked a renewed wave of optimism, with the crypto showing notable signs of a rally.
As of press time, HYPE is valued at $25.20, with an impressive daily surge of 3.5%. Despite this 24-hour uptick, the token is still experiencing a concerning trend, with notable declines of 14% and 24% over the past week and month, respectively.
