Hyperliquid has moved to calm community worries after a wallet that allegedly sold a large chunk of HYPE tokens was linked to the project’s internal team.
On Monday, co‑founder Iliensinc posted on Hyperliquid’s Discord that the address in question—0x7ae4…1028—belongs to an ex‑employee who was terminated in Q1 2024. “This individual is no longer associated with Hyperliquid Labs, and their actions do not reflect our team’s standards or values,” Iliensinc wrote, responding to weeks of speculation sparked by a community member’s claim.
The accusations began after user cobe.hype flagged the address and said it had sold roughly 4,000 HYPE tokens in a single day in November—about $134,000 at the time. That report prompted concerns about potential insider selling from what some believed was a team wallet.
Iliensinc used the Discord post to reiterate Hyperliquid’s internal rules. The platform says it enforces a strict trading policy requiring employees and contractors to follow high ethical standards around HYPE. That policy specifically bans team members from derivatives trading involving HYPE—including both shorting and taking long positions—and prohibits trading on material non‑public information or sharing such information with third parties.
Founded in late 2022, Hyperliquid has quickly become the dominant player in decentralized perpetuals. CoinGecko data cited by the team shows the platform handled at least $653 billion in trading volume in Q2 2025, representing roughly 73% of the perp DEX market.
High-profile backers and industry figures have praised the platform’s rise. Arthur Hayes, co‑founder of BitMEX, recently called Hyperliquid the “best story” of this cycle, noting that HYPE launched at “two or three bucks” in November 2024 and surged to about $60.
HYPE has been volatile through 2025, peaking near $60 in mid‑September before subsequent sell‑offs. At the time of publication HYPE was trading around $25.40—down roughly 24% over the past year but up about 290% since launch, per CoinGecko.
Hyperliquid’s clarification addresses the immediate community concern; whether it fully allays questions about token distribution and former employee holdings will depend on further transparency and any follow‑up reporting.
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