Arthur Hayes is facing a wave of criticism after selling $5.1 million worth of HYPE tokens, the digital asset associated with the Hyperliquid decentralized exchange, just weeks after publicly predicting a 126x rally.

This move coincided with Hayes making a deposit on a new Ferrari, an action he flaunted on social media. The timing of the sale, combined with his seemingly celebratory purchase, has triggered accusations of 'pumping and dumping' the token among crypto traders. Adding fuel to the fire, Hayes' own firm, Maelstrom, has issued a warning about a significant $11.9 billion HYPE token unlock scheduled to begin in November, potentially flooding the market with new supply and driving down the price. This raises serious questions about Hayes' motives, the ethics of promoting an asset before quickly divesting, and the overall future prospects of HYPE in light of the anticipated market pressure.

While Hayes insists that the sale was related to his firm's concerns, the optics of the situation remain damaging, casting a shadow over his credibility within the crypto community.