At Korea Blockchain Week, Arthur Hayes responded to a direct question about why he sold Hyperliquid after previously predicting a 126x return. He clarified that the 126x figure was a long-term forecast for 2028, not the current market in 2025, and he maintains belief in the project's long-term potential. However, Hayes explained the sale was a rational investment decision due to significant short-term challenges facing Hyperliquid.
- The platform faces substantial selling pressure of $500 million per month from token unlocks.
- Its revenue, which is used for buybacks, is being eroded by intense competition from zero-fee and low-fee competitors.
- Users are highly sensitive to transaction fees and are constantly seeking alternatives.
Hayes emphasized that as a Chief Investment Officer, his role involves balancing risk and return. He defended the decision as prudent portfolio management, stating that taking profits on the way up and managing downside risk is essential.
Arthur Hayes faced a sharp question at the Korea Blockchain Week: Why sell now when he predicted Hyperliquid would return 126x?
Hayes responded that the market depends on cycles. The 126x he mentioned in his Tokyo speech was the expectation for 2028, while it is now 2025. He still believes in the long-term potential.
But he admitted that Hyperliquid faces severe challenges in the short term: $500 million in token unlocking selling pressure every month; the income it relies on for buybacks is being eroded by zero-fee or low-fee competitors; users are extremely sensitive to transaction fees and are always looking for the "next Hyperliquid."
He pointed out that as an investment manager, one must consider the risk-return balance. "If the stock price rises from 50 to 100, I don't lose money; if it falls to 25, I can exit and re-enter. This is rational portfolio management. This is why I am a CIO, not a puppet."
