Gracy Chen, general director of Bitget Exchange Cryptocurrency, criticized Hyperliquid support through the incident of March 26 with its eternal exchange, saying that he exposes the network to the risk of “FTX 2.0”.
On March 26, Hyperliquid, a blockchain network specializing in trade, said that she had threw out perpetual Futures contracts to the jelly token and returned users to identifying “evidence of suspicious market activity” related to instruments.
The decision, which was made by a consensus among the relatively miniature number of Hyperliquid validators, meant existing fears regarding the perceived centralization of the popular network.
“Despite the fact that it presents himself as an innovative decentralized exchange with a bold vision, hyperliquid works more like at sea [centralized exchange]Chen said, after saying “Hyperliquid can be on the right track to become FTX 2.0”.
FTX was a cryptocurrency exchange led by Bankman-fried itself, which was convicted of fraud in the US after the rapid fall of FTX in 2022.
Chen did not accuse hyperliki against specific legal offenses, emphasizing what she considered “immature, unethical and unprofessional” reaction to this event.
“The decision to close the jelly market and position settlement force at a positive price is a risky precedent,” said Chen. “Trust – not capital – is the basis of every exchange […] And when it was lost, recovery is almost impossible. “
Source: Gray Chen
Related: Hiperliquid deles jelly, citing “suspicious” activity
Jelly incident
The token jelly was launched in January by the co-founder Venmo IQram Magdon-Iimail as part of the Web3 social media project called Jellyjlylly.
Initially, he reached market capitalization of around $ 250 million before it fell to the unit of millions of millions in the following weeks, According to to Dexcreener.
On March 26, the Jelly market cap increased to around $ 25 million after Binance, the most popular cryptographic exchange in the world, fired His own eternal Futures associated with the token.
On the same day, Hyperliquid Trader “opened a huge item worth USD 6 million on Jellyjlylly”, and then “deliberately self -educated by pumping the price of Jellyjlylly”, ABHI, founder of the Web3 Company AP Collective, he said In the post x.
The founder of Bitmex, Arthur Hayes, said that the initial reactions to Hyperliquid jelly overestimated the potential reputational risk of the network.
“Let’s stop pretending to be decentralized. And then stop pretending to be traders [care]”Hayes he said In the post x. “I bet $ Hype will come back [it] He started in a brief time, because Dgens will decide. “
Binance launched Jelly Leps on March 26. Source: Binance
Growing pain
On March 12, hyperlic struggled with a similar crisis caused by a whale, which deliberately liquidated the position of an ether with a value of about $ 200 million (ETH).
The commits cost deposits in the Hyperliquid, HLP liquidity pool, about $ 4 million losses after forcing the pool to relax in trade at adverse prices. Since then, hyperlic has increased requirements for securing open positions to “reduce the systemic impact of gigantic positions with the hypothetical influence of the market on closing.”
Hyperliquid supports the most popular PERETAL PERETALEAL trading platform, controlling about 70% market share in accordance with the January report of the Asset Vaneck manager.
Eternal Futures contracts or “perpetrators” are the resulting contracts of Futures contracts without the date of expiry. Protection of a deposit margin, such as USDC, to secure open positions.
According to At L2Beat Hyperliquid has two main sets of validators, each of which contains four validators. For comparison, competing chains, such as Solana and Ethereum, are supported by about 1000 and 1 million validation, respectively.
Larger validators generally reduce the risk of a small group from the outside of manipulation of blockchain.
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