Lee Sees Parabolic Rally for HYPE Token at Half Supply Threshold

Tom Lee, Chairman of BitMine, believes that the price of Hyperliquid's HYPE token could skyrocket if a company holding the cryptocurrency in its treasury were to accumulate half of the supply.

In an interview with CoinDesk on September 30 during Korea Blockchain Week, Lee explained how purchases by companies holding cryptocurrency can affect prices. According to Wu Blockchain, he pointed out that as these companies raise new capital and withdraw more tokens from the market, the number of available tokens decreases.

The condition Lee mentioned was reaching a 50% share of the HYPE supply, which is not a share of already acquired tokens but rather a condition for his expectation of a strong rally. He noted that for this to happen, companies need to have a market capitalization above their net asset value, enabling them to raise capital and buy more cryptocurrency.

Wu Blockchain cautioned that Lee's market forecasts are generally optimistic and warned that his expectations may not come to pass, framing the outlook for HYPE as a conditional scenario rather than a definitive price target.