Paradigm-linked wallets unstake $171 million in HYPE, with custody transfer seen as a possible next step

Two wallets believed to be tied to Paradigm unstaked 2.92 million HYPE earlier today, according to Odaily, a move valued at roughly $171 million based on the report. The transaction quickly drew attention because large unstaking events are often read as a sign of pending sell pressure, but former Ethereum core developer and angel investor Eric Conner offered a different explanation. Conner said the move may be more consistent with ETF seeding than with a sale. In his view, custodians need tokens that are liquid and immediately usable, while staked HYPE cannot serve that role. He also pointed to an earlier case in April, when $88 million worth of tokens was unstaked. On that same day, Grayscale updated its S-1 filing and switched its custodian to Anchorage. The report does not confirm any transfer destination. It only notes the unstaking activity and Conner’s interpretation that the tokens may be getting prepared for institutional custody rather than heading straight to market.