Throughout final week’s market downturn that noticed HYPE costs plummet in direction of $20, Hyperliquid reportedly maintained 100% uptime with zero dangerous debt, as acknowledged by the platform’s founder, Jeff Yan.
Nevertheless, in a publish shared on social media website X (previously Twitter), Yan additionally raised issues about sure centralized exchanges (CEXs), suggesting they might have underreported liquidation information throughout this unstable occasion.
The Liquidation Debate
In his remarks, the platform’s founder highlighted that Hyperliquid operates on a blockchain the place each order, commerce, and liquidation happens visibly on-chain, permitting anybody to permissionlessly confirm the execution of those processes.
Associated Studying
But, Yan recognized a troubling pattern amongst some CEXs, which he claims publicly doc a drastic underreporting of consumer liquidations. He took Binance’s instance, noting that even when hundreds of liquidation orders happen concurrently, just one is reported as a consequence of limitations in its information stream.
The platform’s founder asserted that this will obscure the precise quantity of liquidations, significantly throughout high-volatility occasions just like the latest flash crash, resulting in a possible underreporting issue of 100 instances. In response to Yan’s criticism, Binance former CEO and founder Changpeng Zhao (CZ), addressed the problem, stating,
Some individuals ask why is #BNB so robust? Whereas others tried to disregard, conceal, shift blame, or assault rivals, the important thing @BNBChain ecosystem gamers (Binance, Venus, and extra) took lots of of hundreds of thousands out of their very own pockets to PROTECT USERS.
From Binance To Hyperliquid
This change comes on the heels of a significant drop on broader crypto costs final Friday, which noticed the Bitcoin (BTC) value drop from $122,000 to $102,000 on exchanges like Binance, resulting in the liquidation of over $19 billion in leveraged positions.
Amid the chaos, Jeff famous that Hyperliquid reportedly managed a buying and selling quantity between $50 and $70 billion with none downtime or disruption. In distinction, Binance confronted short-term technical points that left some customers unable to shut their positions.
Associated Studying
Hyperliquid’s founder has a historical past with Binance, having participated within the Binance Labs Funding Incubation Program in 2018. Throughout this era, he, together with co-founder Brian Wong, aimed to develop Deaux, a decentralized prediction market product.
Their imaginative and prescient was to create a platform that facilitated collaborative betting inside a world liquidity pool utilizing cryptocurrency. All through their time within the Binance Incubation Program, they emphasised the significance of consumer expertise whereas exploring the advantages of decentralization.
Their product sought to reflect the user-friendly interface of centralized exchanges like Binance—providing low charges and real-time suggestions—whereas guaranteeing safety by way of blockchain good contracts and incorporating decentralized democratic voting for settlement.
On the time of writing, HYPE continues to be recording weekly losses of 14%, with the token buying and selling at round $41.88. Nevertheless, it has recovered by over 4% in the previous few hours, though all-time excessive ranges are nonetheless 28% away.
Featured picture from DALL-E, chart from TradingView.com
