badbrains

[badbrains @bbrains37]

@Havochl_ What are you talking about, it's trading at a 6% discount...

[badbrains @bbrains37]

@0xMerp I hear this guy druckenmiller owns some, maybe ask him

[badbrains @bbrains37]

@dampedspring https://t.co/U5gtkjd9CY

[Markets Alpha @MarketsAlpha]

HYPE has been underperforming recently despite one of its biggest catalysts of the year, fully retracing the entire announcement candle.

Many people argue that this happened because Democrats won the midterm elections, creating significant uncertainty around the legalization of perps in the US.

But is this the entire reason behind the current price action, or is there something else going on?

We traced the onchain activity to see what was really happening and uncovered the real reason.

Hours after the NYSE announcement, FalconX (a well-known brokerage desk) received roughly 910k HYPE ($86M) from several different addresses. Between October 30 and November 3, they distributed most of that HYPE across Coinbase, OKX, and Bybit, likely to sell it over those days and the following ones, causing the dump.

Trace the transactions here: https://t.co/n6OGAmkfw0

Who did this HYPE belong to?

There's no way to know for sure, but our strongest lead points to Paradigm.

In August and September, they sent 692k and 770k HYPE to Coinbase Prime, respectively. They could have held most of it there until they found exit liquidity, and this announcement might have been the catalyst they'd been waiting for to liquidate those bags.

On November 1, Paradigm unstaked 2.55M HYPE. If their strategy is to keep some liquid HYPE in custody until they find new exit liquidity (e.g., when PURR trades above 1.2x mNAV and starts buying HYPE again), this unstaking makes sense, as they seem to have already sold all the liquid HYPE they had left.

So, at this point, there are three likely outcomes:
- If our theory is correct, they'll send that HYPE to Coinbase Prime, where it will sit for a while.
- If not, they might sell it or they might consolidate it into a single address.

[badbrains @bbrains37]

@standuquesne Hyperliquid.

[shoku @sershokunin]

lots of reasons to be excited today but having my idols first ever x post be about trade(xyz) tops it all

[badbrains @bbrains37]

@_stevenhl HyperEVM and holding @Hypurr didn't even make the list? 💀

[badbrains @bbrains37]

@ValantisLabs Does it auto-accumulate the extra yield? Or do you have to claim rewards?

[badbrains @bbrains37]

@shaundadevens @blockworksDAS @chameleon_jeff Hyperliquid.

[badbrains @bbrains37]

@Beliukh_ Nah, all you need is a solid hl aligned alternative to OS

[badbrains @bbrains37]

> portfolio margin killing looping strategies
> transition from yield to utility for staking
> enable LST utility through valantis prime
> enable marketplace for LST utility through pendle

> gModule

@ValantisLabs hyperliquid:native

[DevenMat 🍓 @DevenMat]

https://t.co/TjScvBRACj

[badbrains @bbrains37]

@DevenMat 👀

[badbrains @bbrains37]

@marintrades similar vibes on MMT..
This might make me look at sierra again

[badbrains @bbrains37]

@DevenMat Gud take. But I don't see why it can't be both: yield + protocol utility as staking incentive.. imo completely nuking yield wouldn't be good for decentralization, as a bigger portion of hype would sit idle.
That said, I think recent developments have nuked any looping strat

[badbrains @bbrains37]

@LowHash @AscendLaunch Serious? How?

[badbrains @bbrains37]

@0xOmnia @Enter_Elysium Nft marketplace on Elysium? Competitor to OS that actually rotates fees into... KNTQ???

[badbrains @bbrains37]

@Henrik_on_HL Tbf, hype airdrop also had a massive change of hands in the first few days, similar to what you're describing for var here. Hype just had enough demand to absorb it.

[badbrains @bbrains37]

@AlucardTrades 10/10 almost a year ago...
Long enough to get all levered up again🫪

[badbrains @bbrains37]

@mojoppg @hyperlendx damn, rates still high.. Seems like a lot of hype supply got withdrawn

[badbrains @bbrains37]

@jords Whenever I feel under-allocated or like I missed out, I think abt all those who did not sign the HYPE T&C.. 💀

[badbrains @bbrains37]

@AlucardTrades Best thing I read on this app today, thanks for sharing sir