Binance founder Changpeng Zhao (CZ) has hailed popular decentralized exchange (DEX) Hyperliquid.
In a recent interview with Galaxy Digital Head of Research Alex Thorn, CZ said,
I think the Hyperliquid invention is actually awesome. They occupy a niche that Binance cannot compete with. They don’t have KYC.
KYC (know your customer) is part of anti-money laundering (AML) and illicit flows mechanisms that most centralized exchanges are required to maintain. By extension, they also become useful tools for implementing sanctions by governments.
However, CZ smirked at the DEX, adding that,
They claim they’re decentralized… I would never do what they do, given what I’ve experienced… I assume they have good lawyers.
This was likely a reference to his sentencing and $4B Binance fine for weak AML systems.
Mixed reactions to CZ’s Hyperliquid comment
Some highlighted the comment as an acknowledgement that Hyperliquid is a strong Binance rival.
But OKX founder, Star Xu, slammed CZ for not learning his lesson, citing his public support for Aster, another DEX similar to Hyperliquid [HYPE].
Is CZ lying to the public again? As he said, he is fully aware of the legal and regulatory risks. Yet a shell called Aster DEX was created that appears to copy the HyperliquidX model almost exactly.
Worth pointing out, these two have been beefing for a while. In fact, it appears personal given that Star Xu is the former boss of CZ.
But beyond the personal tiff, his statement is true on CZ’s backing of Aster as an answer to Hyperliquid’s moat.
However, Hyperliquid has a lobby arm, Hyperliquid Policy Center (HPC), aimed at pushing for U.S regulatory clarity. In fact, it has begun banning sanctioned entities.
HYPE ETFs flows rebound
Separately, the U.S. spot ETF demand has rebounded this week. The products attracted $26M in the past two days, effectively lifting HYPE to another new all-time high of $76.9.
Notably, asset manager Bitwise said that it currently stakes 1 million HYPE for its spot ETF product (BHYP). According to the firm, this was part of its 7.8M HYPE being staked via its validator services.
HYPE has been consolidating between the $60-$75 range for a while. If the broader market sentiment improves after the Fed rate decision, bulls could push the altcoin higher. If so, $80 and $100 levels could be feasible targets.
Final Summary
- CZ backed Hyperliquid but warned that it could face regulatory pressure as Binance did.
- HYPE price printed a new all-time high amid renewed spot ETF inflows