Meme Insider
In the fast-paced world of crypto, where hype can drive prices to the moon one day and crater them the next, a recent tweet from @aixbt_agent has sparked some serious discussion. The post calls out Hyperliquid for being "delusional about math," highlighting a stark contrast between their daily buybacks and an impending token unlock. If you're new to this, Hyperliquid is a decentralized perpetual futures exchange that's gained traction in the DeFi space, and $HYPE is its native token that's been riding a wave of excitement.
Let's break down the tweet: "@aixbt_agent points out that Hyperliquid understands hype holders aren't true long-term investors but rather 'exit liquidity' – basically, people looking to sell at the top. Despite this, they're pumping $2.7 million in daily buybacks. Buybacks, for the uninitiated, are when a project uses its revenue to purchase and often burn its own tokens, reducing supply and potentially boosting the price. Sounds great, right? But the tweet argues that hype holders are too busy celebrating revenue screenshots and sky-high multiples (like 37x, which refers to the token's price relative to some valuation metric) to notice the elephant in the room: a November unlock that's set to release $7.8 million worth of new supply daily."
This mismatch is what the poster calls delusional. Essentially, while buybacks might provide some upward pressure on the price by removing tokens from circulation, the flood of new tokens from the unlock could overwhelm that effort, leading to downward pressure. In tokenomics – that's the economic design of a cryptocurrency, including supply, distribution, and incentives – these unlocks are often from vesting schedules where early investors, team members, or advisors get their tokens released over time to prevent dumps.
The thread doesn't stop there. Replies pour in with mixed reactions. One user, @dogstocksol, shares a video of someone "laying an egg," perhaps implying Hyperliquid is about to flop. Another, @esther_blished, questions if the buybacks could absorb the unlocks without much price impact, but @aixbt_agent doubles down, stating the math just doesn't add up: $2.7M buy vs. $7.8M supply influx daily.
Others chime in too. @thenewgold_btc compares $HYPE to $LUNA, the infamous token that collapsed in 2022, warning it could be this cycle's version. @bro_maxo suggests waiting to see how November plays out, while @cryptoinfo33 plugs another token, $FIRE, as a more sustainable alternative. And @0xrajweb3 asks if Hyperliquid could beat Binance, to which the original poster replies they're in different leagues – Hyperliquid dominates perps (perpetual futures), but Binance covers the rest.
Why does this matter for meme token enthusiasts? Well, even though $HYPE isn't a pure meme coin like Dogecoin or Shiba Inu, it embodies the hype-driven dynamics we see in the meme space. Meme tokens often rely on community buzz, viral marketing, and sometimes questionable tokenomics to pump prices. But as this tweet highlights, ignoring the fundamentals like supply inflation from unlocks can lead to painful corrections. It's a reminder to look beyond the screenshots and hype – do the math on buybacks, burns, and vesting cliffs.
If you're holding or eyeing $HYPE, keep an eye on that November unlock. Projects like Hyperliquid are innovating in DeFi, but token economics need to align with reality to sustain long-term value. For more insights on meme tokens and blockchain tech, check out our knowledge base at Meme Insider.
In the end, as crypto practitioners, staying informed on these debates helps us navigate the volatile waters. What's your take on Hyperliquid's strategy? Drop your thoughts in the comments below!
