The $HYPE token airdrop that took place a few weeks has turned out to be one the biggest airdrops ever. My Twitter/X timeline is full of posts from people who made life changing gains by this airdrop. I was completely caught off guard as I had not even heard of this project let aside grinding for the airdrop. I have accepted the fact that nobody has the time to active for all the airdrops so it is expected you will miss some of them. During the next days $HYPE kept recurring in my feed with stories of the token price going from $5 at launch to over $30. I had been fading Hyperliquid as a missed opportunity but now I decided to check out what was so special about this project that it continued to grow so fast.
Usually a token takes a dip after the launch as many users sell their airdrop allocation for creating liquidity. This was clearly a case that rather than selling people were buying into the token. I became curious and started to research into what this project was all about.
What Exactly is Hyperliquid?
Hyperliquid is basically a DEX that gives it’s users the options to do spot trades as well as leveraged trades. You have the option to select market price or set your own limit price. Leverage of upto 50X is available for popular coins like BTC and ETH. At the first glance you might think that spot trading and leveraged trading are nothing new in crypto then why is Hyperliquid getting such wild levels of attention.
As you dig deeper you find out there are 2 main reasons for this craze:
It’s Own L1 Blockchain - As Hyperliquid has it’s own chain it does not have to wait for any off-chain settlements so all transactions are lightening fast.
True Decentralisation - This is the real game changer. All the other platforms where you would have done trading as similar levels are CEX like Coinbase which require KYC and there is possibility that your account may get limited or completely blocked for any arbitrary reason. This reminds me that my Coinbase account got locked last month for no clear reason. Luckily I had very few funds leftover there.
The reason Hyperliquid keeps getting more popular is that it offers a decentralised platform where you can trade coins from different chains at the same place.
Only thing you need to take care of is moving your funds to the Hyperliquid chain.
How Do I Move my Funds to Hyperliquid?
There are a couple of options to bridge funds over to Hyperliquid but the option I found most convenient is the app called deBridge. It gives you several options to bridge funds over to Hyperliquid from chains like ETH, Solana or EVM L2s like BNB, Arbitrum and Avalanche.
deBridge is currently running a points system giving weights to each bridge you perform so there is a good chance there can be an airdrop in the future.
One thing you need to keep in mind is that you have multiple options to bridge into Hyperliquid chain but you can’t use the app to bridge funds out of Hyperliquid. Currently there is just one option to withdraw funds out of Hyperliquid and that is in USDC and into the Arbitrum chain. This withdrawal needs to be done directly from Hyperliquid platform.
If you would like to try it out please use my referral link - https://app.debridge.finance/r/30959
Like all things in crypto you have to DYOR before jumping into new projects. In the case of Hyperliquid even more so as 50X leverage is a dangerous tool to play with if you don’t have a clear risk management plan to begin with.
Considering all the risk factors if you do decide to try out Hype then pls use my referral link so both us get some discounts on the trading fee - https://app.hyperliquid.xyz/join/SAMBTC
Cheers,
Sam