Is it possible Hyperliquid ($HYPE) to scam

[hostm]

HYPE is the coin of one of the most popular decentralized exchange for perpetual futures contracts.

However, users on many platforms where cryptocurrencies are discussed raise the question: is the exchange truly decentralized? Unlike Ethereum - which boasts over 800,000 validators - Hyperliquid network has no more than 24 ones, and the majority of them are located in Japanese data centers.

Therefore, I have a question: will the Hyperliquid continue to exist, or will it fade into oblivion?

[Charles-Tim]

At least it is better than those centralized exchanges that are not just only centralized, but pressured by the government to make their customers to do mandatory identification verification.

Hyperliquid is not absolutely decentralized, but it is far better than those centralized exchanges for privacy.

[hostm]

It doesn't matter which one is better. It's a question if Hyperliquid will exist or not.

[sergiorus]

It doesn't matter which one is better. It's a question if Hyperliquid will exist or not.

it's just a matter of time until they are forced to implement KYC/AML. Absolutely inevitable.

once it happens, the volumes and the capital will start vanishing. some will move to smaller exchanges that can afford not having KYC yet. some will go back to centralised exchanges.

it will probably still have enough users and volume to continue operating but the token price will begin its journey towards zero.

[JeromeTash]

Why is your post title more of a clickbait?

Therefore, I have a question: will the Hyperliquid continue to exist, or will it fade into oblivion?

The platform may continue to exist, but pressure from regulators may lead to some issues such as fines, jail sentences, etc. We have seen this kind of thing happen before. I remember Etherdelta ending up facing some legal issues and a couple more "decentralised" exchanges that even started blocking users from other regions on the front end.

For something to be truly decentralised, it needs to have independent validators or nodes around the world whereby a blockade in one country won't affect the network.

[jossiel]

It doesn't matter which one is better. It's a question if Hyperliquid will exist or not.

That's the mystery that we will soon find out if they're too big to fail. When the regulators step, it's a possibility that it will have to comply on what they are asked for.

And with that, they can become a hybrid exchange or turn into more favorable with the regulators.

IIRC, there have been some dex before that have been popular but when they have changed their ways. The liquidity dropped until they're no longer known today.

[Dr.Bitcoin_Strange]

Therefore, I have a question: will the Hyperliquid continue to exist, or will it fade into oblivion?

Based on what I see, Hyperliquid has a strong innovation and they are still waxing strong right now and I believe they are seeing profit in their company since they already have a lot of customers patronizing them, if they actually do not have any intention to scam and they also continue operating with the force they are doing right now, I don't think they DEX will fad. The future always remain unknown, they have not had any hack issue but we can tell that some exchange has short down in the past because of hack cases and they faded away till today, so we don't know what will happen with HYPE tomorrow.

[sergiorus]

It doesn't matter which one is better. It's a question if Hyperliquid will exist or not.

IIRC, there have been some dex before that have been popular but when they have changed their ways. The liquidity dropped until they're no longer known today.

DYDX? at some point had $27 billion valuation or so. Once the biggest one. Hyperliquid a few years before Hyperliquid.
I don't remember what happened. Just remember they moved from Ethereums L2 to own L1 but maybe it was after the things started looking ugly.
Where is it now - i've no idea.

[jossiel]

It doesn't matter which one is better. It's a question if Hyperliquid will exist or not.

IIRC, there have been some dex before that have been popular but when they have changed their ways. The liquidity dropped until they're no longer known today.

DYDX? at some point had $27 billion valuation or so. Once the biggest one. Hyperliquid a few years before Hyperliquid.
I don't remember what happened. Just remember they moved from Ethereums L2 to own L1 but maybe it was after the things started looking ugly.
Where is it now - i've no idea.

That's one of it.

There's another one I think there's a lot of them like idex. And there was at point that fork/etherdelta were popular as well.

I don't know what happened to them as well. So these kinds of exchanges were almost the same and things didn't go well for them.

[rat03gopoh]

Currently, there are only 24 active validators out of 30 slots⁽¹⁾. They select the most stable validators based on activity through community delegation⁽²⁾ and permissionless validators⁽³⁾ to ensure the network remains decentralized. If a validator becomes inactive and all 30 slots are full, permissionless validators will replace them.

They may expand the number of permissioned validator slots if the ecosystem grows in the future and the demand for decentralization increases.



1) https://app.hyperliquid.xyz/staking/
2) https://hyperliquid.gitbook.io/hyperliquid-docs/validators/delegation-program
3) https://hyperfnd.medium.com/hyperliquids-permissionless-validator-network-secured-by-the-community-ad0057cfad71

[TastyChillySauce00]

The harsh reality of dapps even perp market ones. Validators are handpicked by the foundation so it's basically the foundation itself running the entire things and the reserve always sits behind multi signature contract which consisted of the foundation member itself.

Therefore, I have a question: will the Hyperliquid continue to exist, or will it fade into oblivion?

Maybe, it will exist until the platform itself isn't profitable anymore. The people behind hyperliquid are already known like Jeff so I doubt they'd do the unthinkable. If you are concerned you should diversify.

[sergiorus]

It doesn't matter which one is better. It's a question if Hyperliquid will exist or not.

IIRC, there have been some dex before that have been popular but when they have changed their ways. The liquidity dropped until they're no longer known today.

DYDX? at some point had $27 billion valuation or so. Once the biggest one. Hyperliquid a few years before Hyperliquid.
I don't remember what happened. Just remember they moved from Ethereums L2 to own L1 but maybe it was after the things started looking ugly.
Where is it now - i've no idea.

That's one of it.

There's another one I think there's a lot of them like idex. And there was at point that fork/etherdelta were popular as well.

I don't know what happened to them as well. So these kinds of exchanges were almost the same and things didn't go well for them.

IDEX, Etherdelta, Ethfinex, Switcheo there were many but those were just spot exchanges, besides most didn't have a token. They just got obsolete after introduction of AMM-exchanges (i.e. Uniswap)

DYDX on the other hand, was a derivative futures exchange, just like Hyperliquid.

[MAAManda]

HYPE is the coin of one of the most popular decentralized exchange for perpetual futures contracts.

However, users on many platforms where cryptocurrencies are discussed raise the question: is the exchange truly decentralized? Unlike Ethereum - which boasts over 800,000 validators - Hyperliquid network has no more than 24 ones, and the majority of them are located in Japanese data centers.

Therefore, I have a question: will the Hyperliquid continue to exist, or will it fade into oblivion?

If the number of validators is your concern, you should know that BNB (BNB) used to only have around 20+ validators, at that time many people still believed in the blockchain even though it was considered semi-centralized with that small number of validators. Currently, the BNB (BNB) blockchain has over 40 validators, indicating that entities wanting to become validators are growing.

Hyperliquid (HYPE) which currently only has 24 validators may evolve in the future for the full decentralization purpose, I personally feel that this project will not disappear in the sense of scam, but the project may lose adopters with the emergence of new competitors in the future.

[hostm]

you should know that BNB (BNB) used to only have around 20+ validators, at that time many people still believed in the blockchain even though it was considered semi-centralized with that small number of validators.

I know that Binance (at least its ex CEO CZ who holds a lot of BNB coins) has connection with Trump. Otherwise, why did Trump pardon CZ just a few days after the historic altcoin crash - which also triggered a drop in Bitcoin? That is why BNB network (even if it has only 1 validator) ways stronger, than Hyperliquid.

[jossiel]

That's one of it.

There's another one I think there's a lot of them like idex. And there was at point that fork/etherdelta were popular as well.

I don't know what happened to them as well. So these kinds of exchanges were almost the same and things didn't go well for them.

IDEX, Etherdelta, Ethfinex, Switcheo there were many but those were just spot exchanges, besides most didn't have a token. They just got obsolete after introduction of AMM-exchanges (i.e. Uniswap)

DYDX on the other hand, was a derivative futures exchange, just like Hyperliquid.

You're right, with the introduction of uniswap most of those early ones have been out dated.

Hyperliquid (HYPE) which currently only has 24 validators may evolve in the future for the full decentralization purpose, I personally feel that this project will not disappear in the sense of scam, but the project may lose adopters with the emergence of new competitors in the future.

That is how I am comparing it if it will be start to be out of scene when there are other better competitors that comes out.

But we probably won't see that for now or maybe some will be built during this bear.

[shinratensei_]

you should know that BNB (BNB) used to only have around 20+ validators, at that time many people still believed in the blockchain even though it was considered semi-centralized with that small number of validators.

I know that Binance (at least its ex CEO CZ who holds a lot of BNB coins) has connection with Trump. Otherwise, why did Trump pardon CZ just a few days after the historic altcoin crash - which also triggered a drop in Bitcoin? That is why BNB network (even if it has only 1 validator) ways stronger, than Hyperliquid.

Saying BNB even with 1 validator is stronger than Hyperliquid is being overly biased, 1 validator is 1 validator and it means maximum centralization. The two are no different, BNB is as centralized as hyperliquid does and I won't deny that as avid holder of HYPE myself but BSC can be worse sometime.

The way I can justify the centralization within hyperliquid is that they are still on a trial and error, they don't want to give room for bad actor, JELLY is good example although eventually they need to make their code more open and improve decentralization.

[hostm]

centralization within hyperliquid is that they are still on a trial and error

It makes no difference how centralized or decentralized the platform is. The founder of Hyperliquid and his team live and work in Singapore. The servers are hosted in Japan. Both Singapore and Japan are easily accessible to U.S. intelligence agencies.

Binance, too, recently teetered on the brink of collapse - specifically when CZ was arrested and imprisoned, and the exchange was forced to share its revenues with the powers that be.

Hyperliquid generates massive revenues, yet pays no kickbacks to anyone. Therefore, the platform can be easily scammed.

Currently, there are only four coins that are almost impossible to scam: Bitcoin, Ethereum, Ripple, and BNB.

[Localhostspeed]

HYPE is the coin of one of the most popular decentralized exchange for perpetual futures contracts.

However, users on many platforms where cryptocurrencies are discussed raise the question: is the exchange truly decentralized? Unlike Ethereum - which boasts over 800,000 validators - Hyperliquid network has no more than 24 ones, and the majority of them are located in Japanese data centers.

Therefore, I have a question: will the Hyperliquid continue to exist, or will it fade into oblivion?

If you want to win people in crypto space, give them shares and let them be happy. Hype team.put community first, they airdrop billions of hype to their early supporters and that's what every project should do when they try to launch a product, they gave access to the people first before and these are the people that stood with the project today. If hype is getting all the hype they need, it's because they did what some other project couldn't do.

I watched some interviews from CZ trying to rub their work on their face but the community refused to let that happen. Honestly if you ask me about hype, I will say it's because of the community and this is how Binance started before they loss their relevance. You can't fully trust a project though but for now I can say this people are  good in what they are doing compare to some project and I hope they don't fail the community that has trust on them.

[asriloni]

For me, HL is a centralized perp build in on chain. It's never been decentralized. Like you siad how it has fewer nodes that operated its blockchain and perp.

As for your question, it's true HL can be a scan someday, but none knows about how long it will happen. The reason is they have been one of players the recorded huge income for their employees. How can they be a scam when they keep printing so much money for their own? I don't see a sense on this.

[nelson4lov]

HyperLiquid is not fully decentralized. At least it's better than centralized exchanges where you still have to KYC to get fucked in the ass by either their MMs or how they designed their system so retail always loses. HyperLiquid is level playin field. On the subject of HyperLiquid only having 24 validators, the team initially wanted a small number of Validators so they can coordinate fast and scale decisions faster. In DAOs, reaching consensus over decisions and votings take a long time because of too many entities being needed to pass the high threshold. Imo, HyperLiquid will open the doors to more validators in the near future.