HyperLiquid faced a significant challenge after an attack exploited the low liquidity of $JELLYJELLY. This incident has once again raised questions about the true decentralization of such platforms.
New Attack on HyperLiquid and Its Consequences
HyperLiquid experienced an attack targeting the low-liquidity meme coin $JELLYJELLY. To prevent financial losses, the platform decided to delist this coin. This event has sparked debates about the level of centralization of platforms like HyperLiquid and their adherence to decentralization principles.
Impact on USDC Reserves and Community Reaction
In response to the incident, HyperLiquid's USDC reserves saw a drop of over $340 million. This has led to sharp discussions in the community about the true decentralization of such platforms. Gracy Chen, CEO of Bitget, criticized HyperLiquid by comparing it to FTX. Meanwhile, BitMEX founder Arthur Hayes commented on the perceived centralization of the platform.
HyperLiquid Market and Regulatory Scrutiny
HyperLiquid's recent devaluation represents a significant moment, highlighting the fragile balance between decentralization and platform control. According to CoinMarketCap, HyperLiquid (HYPE) trades at $12.59 with a market cap of $4.20 billion. Insights from the Coincu research team suggest that HyperLiquid's current challenges could lead to heightened scrutiny over decentralized exchange operations.
The attack on HyperLiquid and subsequent delisting of JELLY have incited lively discussions in the community and could lead to increased scrutiny from regulators.
