Market Impact of Large Cryptocurrency Positions and Acquisition Costs

As Jack Kong, CEO of Nanolab, recently pointed out on X, the market behavior of large investors can have significant ripple effects on the overall market. A prime example is the activity of renowned investor Laurent Zeemes. He executed a substantial buy during a period when the HYPE token’s price was declining, and subsequently benefited from a market rally, resulting in enormous unrealized gains. From this case, it becomes clear that the acquisition cost is not merely the purchase price but a key indicator that influences investors’ market timing decisions and position management strategies.

What is Acquisition Cost: The Key to Investor Strategy

When Zeemes accumulated 1.478 million HYPE tokens, his average acquisition cost was $24.36 per token. Having a concrete understanding of such acquisition costs is extremely important for investors. This is because the acquisition cost is not just historical data of “how much was paid,” but a compass that guides future selling timing, profit-taking decisions, and even psychological holding levels.

As of February 14, 2026, the price of HYPE is $31.42, recording a 3.40% decline over the past seven days. This makes the transition from the $24.36 acquisition cost to the current price a crucial indicator reflecting Zeemes’ position value and market sentiment.

Analysis of HYPE Token Position and Profit Structure

Zeemes’ position of approximately 1.48 million tokens is substantial within the market. Initially, when the price rose to $38, it was said to have generated unrealized gains exceeding $20 million. However, at the current price of $31.42, the value of that position fluctuates, and the investor’s breakeven point is always evaluated based on the $24.36 acquisition cost.

Such a large position attracts significant market attention. The larger the position, the greater the impact the holder’s selling decisions can have on the entire market.

Liquidity Risks from Large-Scale Selling

A critical issue that arises is the liquidity impact during the liquidation of such massive positions. If Zeemes were to release approximately $56 million worth of holdings into the market all at once, questions about market absorption capacity emerge.

Market absorption depends on multiple factors, including the scale of the sale, the diversity of market participants, and the depth of liquidity. Whether a large-scale sale can be absorbed without causing market chaos heavily depends on current market conditions and liquidity status, leaving some uncertainty. The greater the divergence between the investor’s acquisition cost and the subsequent market price, the higher the potential impact during liquidation.