In short
- Arthur Hayes warned that Hyperliquid’s use of trading funds to burn signals reveals a pattern of losing market shares.
- Less than two months after predicting that HYPE would hit $150, BitMEX co-founder Arthur Hayes terminated his entire position.
- Although Hyperliquid raised $3 billion in open interest, Hayes expects fierce competition from Wall Street.
Hyperliquid has been going on as a crypto derivatives darling since its inception in 2023, but the honeymoon may not last forever, according to BitMEX co-founder Arthur Hayes.
Even the booming popularity of the booming startups has helped boost their latest brand, Hayes the speaker said. Decrypt in interview that the coming competition from Wall Street and established crypto players threatens to destroy one of the drivers of digital assets.
Hyperliquid relies on a fixed fee for trading funds to buy its token on the open market and remove it permanently – a strategy designed to encourage scarcity, which Hayes warned, leaves the system vulnerable to sudden market collapse.
“At the end of the day, this is a money issue,” he said. “There’s going to be more competition for real world assets, whether it’s from a centralized exchange like Binance (or) the TradFi exchange.”
Arthur Hayes (@CryptoHayes) emerged as one of Hyperliquid’s biggest cheerleaders as his brand skyrocketed.
On Thursday, he said he had “lost” his belongings. Here are some of the risks they think startups might face: pic.twitter.com/ZS5SYl2CIJ
– Decrypt (@DecryptMedia) June 4, 2026
A day after his interview, Hayes to inform followers on X that he “just lost” all of his HYPE tokens, along with other digital assets. He also mentioned rising energy prices, IPOs sucking oxygen, and President Trump’s face on AI.
“Time to make a profit,” he added, less than two months after writing and to share An article explaining why the Hyperliquid token “will reach $150 by August 2026.”
HYPE changed hands at around $59 on Sunday, down 14% over the past seven days, according to CoinGecko. The stock hit an all-time high above $75 last week. Hayes’ sudden change threw viewers the wrong way, but during an interview, he praised the rise of Hyperliquid as a place to sell the wrong markets over the weekend, especially oil.
“The chronic haters of crypto have had to accept that the price and availability of the prices of these major assets happen over the weekend on the crypto trading platform,” he said. “I think this is a watershed moment, and that’s what made people wake up.”
Hyperliquid began supporting real-world asset derivatives, including gold and silverthrough the October upgrade. On Tuesday, X’s official account on the platform he said that the total interest on senior positions linked to such markets reached $3 billion.
So far, the platform has repurchased 26.6 million HYPE, removing 579,603 HYPE from circulation, according to Dune. dashboard. The capital investment represents approximately $1.56 billion of the Hyperliquid token at current prices.
Hayes also said that the US giants are pushing hard for a permanent future location. Unlike traditional futures, derivatives – also known as perps – never expire, allowing traders to speculate freely between periodic payments that hold prices.
Under Hayes, BitMEX created the world’s first full-time contract in 2016, an idea that was originally conceived in the early 90s by Nobel Prize-winning economist Robert Shiller. Today, Hayes predicts that those living on Wall Street will eventually take the resources to survive.
“All these traditional exchanges will be forced to introduce a competing product,” he said. “By next year, we’re going to see good liquid products at TradFi that use this design consistently.”
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