Arthur Hayes explains the reason for selling HYPE: the massive unlocking is the "Sword of Damocles."

ChainCatcher message, Arthur Hayes forwarded an analysis article titled "The Sword of Damocles of HYPE" and stated, "This is the reason for today's sell-off of 96,600 HYPE. But don't worry, a 126-fold increase is still possible; 2028 is still far away."

The analysis mentioned that HYPE is about to face its real test. Starting from November 29, 2025, 237.8 million HYPE tokens will begin to unlock linearly over 24 months. At a price of $50 per token, this amounts to $11.9 billion in team unlock value, with nearly $500 million worth of tokens entering the market each month. The analysis pointed out that the current buyback capacity can only absorb about 17% of the unlocked tokens, leaving an excess supply of about $410 million per month. The token unlock is a potential "Sword of Damocles."

This morning, Arthur Hayes sold 96,600 HYPE, worth $5.1 million. Just three weeks ago, he predicted that the price of HYPE could rise 126 times in the coming years.