Paradigm Scores $450M Unrealized Profit on HYPE Token Bet

Finance

Paradigm Scores $450M Unrealized Profit on HYPE Token Bet

A bold altcoin gamble has paid off handsomely for Paradigm, one of the most prominent venture capital firms in the crypto space.

Recent blockchain data reveals the firm is sitting on an estimated $450 million in unrealized gains from its investment in Hyperliquids native token, HYPE.

On-chain analyst MLM shared findings on X showing Paradigm acquired roughly $315 million worth of HYPE at an average entry price of $16.46. With HYPE now trading around $37.70, the position is up 142% — making Paradigm one of the largest known holders of the asset.

According to the analysis, wallets believed to be linked to the VC giant control nearly 2% of HYPE‘s total supply and around 6% of its circulating supply. Such a stake would cement Paradigm’s position as a major backer of the project, reinforcing its track record of spotting high-potential blockchain ventures early.

Big Gains, Big Risks

Despite the blockbuster paper profits, the position carries notable risks. The crypto market‘s notorious volatility could quickly erode gains, and the sheer size of Paradigm’s holdings raises liquidity concerns. Offloading a large portion of the stash in one go could pressure the market and drag prices lower.

HYPE itself hasn‘t been immune to turbulence. The token has dropped over 14% in the past week, even as Paradigm’s position remains deep in the green.

The investment underscores a core theme in crypto venture capital: identifying promising projects early can yield outsized returns — but the exit strategy can be just as important as the entry.