The value of Hyperliquid’s HYPE token has dropped over 16% in hours after the Jellyjelly fiasco introduced skepticism to the platform and its credibility. The incident has additionally loosen crypto merchants’ belief in Hyperliquid as they’re withdrawing belongings and transferring out of the DEX.
On March 27, Hyperliquid confronted an enormous wave of criticism from the crypto group after it delisted jellyjelly (JELLY) token from the platform after a dealer allegedly tried to liquidate DEX’s HLP vault in a well-planned buying and selling trick.
Following this facade, the fame and credibility of Hyperliquid has been placed on danger with it severely impacting the platform’s native HYPE token value. As per Coinmarketcap knowledge, HYPE value is at present buying and selling at $13.53 – down 16% up to now 24 hours.
HYPE value is at present down 61% from it’s all-time excessive of $35.02, it marked on December 21, 2024. The token gained vital traction in its preliminary days of launch with it surging over 900% within the span of only one month.
The Hyperliquid & Jellyjelly Controversy
The abrupt delisting of the jellyjelly (JELLY) token has sparked debates within the crypto group, with many merchants questioning the equity and transparency of Hyperliquid’s choice. Some individuals argue that the dealer’s technique was inside the scope of decentralized finance (DeFi) buying and selling, whereas others imagine that the platform was justified in taking motion to guard its liquidity suppliers.
As earlier reported by The CryptoTimes, Hyperliquid has taken a loss of over $12 billion on this incident and it has been going through huge backlash from the crypto group.
This controversy has now drawn consideration to the dangers related to buying and selling on decentralized exchanges (DEXs). Citing this incident, many critics are declaring that whereas DeFi platforms promote autonomy and self-custody, circumstances like this spotlight the potential for sudden, unilateral choices by protocol operators.
Because of this, merchants at the moment are reassessing the reliability of Hyperliquid with many shifting in the direction of various DEXs that supply better transparency in dealing with such disputes.
Additionally Learn: Hyperliquid on Track to Become FTX 2.0: Bitget CEO After JELLY Incident
