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Hyperliquid Labs has commenced the distribution of 3.75 million HYPE tokens, valued at approximately $330 million, marking the largest token distribution in the history of the HYPE project. The distribution process concluded on October 7, 2026, with half of the tokens, amounting to 1.875 million HYPE, transferred to five over-the-counter (OTC) buyers.
The distribution began with a seven-day unbonding period initiated on September 30, during which staked tokens were rendered non-transferable. Following this period, each of the five OTC wallets received an equal share of 375,000 tokens. The remaining 1.875 million HYPE tokens are yet to be distributed, leaving the process partially complete. Co-founder iliensinc confirmed that the transaction is linked to an OTC agreement with an undisclosed institutional counterparty, ensuring that the tokens will not enter public markets.
This distribution is significantly larger than previous monthly releases, which typically ranged from 140,000 to 534,000 HYPE tokens. The current distribution represents approximately 1.5% of HYPE's circulating supply. Following the announcement, HYPE's price experienced a positive market response, with some tokens being restaked or aggregated on-chain. The identities of the buyers and the specific terms of the agreement remain undisclosed, leaving investors without visibility on lockup conditions or resale restrictions.
Source: KLEA News