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Hyperliquid and Its Market Impact: Lessons from a Successful Airdrop

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by Giorgi Kostiuk

a year ago


Hyperliquid conducted the largest airdrop in crypto history, excluding venture capitalists and focusing on community involvement. This move proved successful, yet experts warn of the challenges in replicating such success.

Market Impact

Analysts believe that excluding venture capitalists created artificial demand, which affected the post-airdrop value of the HYPE token. A significant role in price dynamics was played by the HYPE Assistance Fund, which daily repurchased tokens with earned revenue.

They literally came back to what crypto was originally, which is fair launches. If the product is decent and the launch is fair, it’s almost guaranteed to pump no matter what.Jae Sik Choi from Greythorn Asset Management

Egalitarian Strategy

Synthetix founder Kain Warwick noted that Hyperliquid succeeded largely due to its egalitarian focus on rewarding early users. He applied a similar approach with Infinex, engaging a significant community.

The big takeaway is not doing these low-float, high-FDV, VC-led raises. By rewarding the early and ongoing users it’s an opportunity to get more actual people in.Kain Warwick

Risks and Potential Threats

Amidst Hyperliquid's success, warnings have emerged. In December, North Korean hackers were found testing the platform, raising security concerns. Regulation can also pose a challenge for future launches.

Sometimes the centralization makes it way better.None

While Hyperliquid’s strategy was successful, experts caution that it will be difficult for other projects to replicate this success. A successful launch is just the beginning, and continued growth depends on various factors.

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