Forget Hyperliquid: High Beta, Low Conviction
Hyperliquid (CRYPTO: HYPE), the native token of the Hyperliquid decentralized exchange (DEX), has been one of the market's hottest and most volatile cryptocurrencies. It was launched on Nov. 29, 2024, at an initial price of $3.20 per token, but it's now trading at about $41. Let's see why this little token skyrocketed -- and why it's a dangerous play for most investors.
Image source: Getty Images.
Before Hyperliquid was launched, it was already actively used to trade perpetual futures contracts (perps) on its DEX. Hyperliquid also initially distributed its tokens via an airdrop to its DEX traders. While some of those recipients immediately sold their tokens for a profit, a larger share held onto them. As a result, the initial demand for Hyperliquid tokens outstripped supply, driving up its price and attracting even more crypto traders.
Source Fool.com
