Hayes Denies $2M HYPE Buy Allegation

Hayes Denies $2 Million HYPE Token Purchase Amidst Community Backlash

BitMEX co-founder Arthur Hayes has reportedly denied purchasing 33,978 HYPE tokens, valued at approximately $2.09 million, a transaction flagged by blockchain analytics firm Lookonchain. The firm had linked the alleged acquisition to a wallet associated with Hayes, which reportedly withdrew the tokens from Bybit on Monday during Asian trading hours.

This alleged purchase surfaced just four days after Hayes announced he had divested his entire HYPE holdings to secure profits while the token was trading above $72.

Following the initial report from Lookonchain, the HYPE token saw a brief surge of 2%. However, Hayes himself responded to the update with a terse denial on social media, tweeting, “I didn’t buy s**t.”

After Hayes disclosed his earlier sale, HYPE experienced a temporary dip to $54. The token has since shown signs of recovery, trading above $61 at the time of this report.

Hyperliquid, the platform associated with the HYPE token, has rapidly ascended to become a prominent derivatives exchange since its 2023 launch. Hayes has been a vocal proponent of the token. His earlier sale, however, drew significant criticism from the cryptocurrency community. Several users on X (formerly Twitter) condemned Hayes’ actions as opportunistic, accusing him of promoting HYPE before cashing out. Others suggested that traders who mirrored his trades had been misled by a “big scammer.”

The controversy has persisted, with some X users accusing Hayes of consistently profiting at the expense of retail investors and urging others to avoid becoming his “exit liquidity.” Further accusations suggest he employs a strategy of “buy in secret, pump in public, dump in public,” thereby manipulating smaller investors.

Strong HYPE Demand Continues Despite Controversy

Despite the ongoing debate surrounding Hayes, separate data from Lookonchain indicates sustained interest in the HYPE token. The analytics firm reported that a newly established wallet withdrew an additional 82,089 HYPE tokens, worth around $5.16 million, from exchanges on Monday.

Over the past week, this same wallet has moved a total of 1.14 million HYPE tokens, valued at approximately $79.22 million, off exchanges. These tokens were subsequently deposited into Hyperliquid for staking purposes.

In related news, Hyperliquid has achieved a significant milestone this month, breaking into the top 10 cryptocurrency assets by market capitalization. It surpassed Dogecoin and became the first decentralized finance (DeFi) protocol since Uniswap in 2021 to reach this level of market prominence.