Hyperliquid capitalized on the wave of FUD surrounding Lighter DEX to emphasize its "trustworthy neutrality" stance, rejecting private investors, deals with market makers, and fees paid to any company.
The competition among perpetual DEXs is heating up as the community scrutinizes Airdrop, liquidation incentives, and market-making agreements. The latest controversy revolves around Lighter, while Hyperliquid also faces pressure from a sharp decline in market share compared to its peak.
- Hyperliquid claims to be "credibly neutral," with no market maker agreements, no private investors, and no corporate fees.
- Lighter's FUD flared up after it was discovered that 5 undeclared wallets received $26 million in LIT when providing $5 million in liquidation.
- Hyperliquid's market share has fallen below 19% from its peak of 75%, while the price of HYPE remains stuck in the $23–$26 range.
Hyperliquid reaffirms its "trustworthy neutrality" and says no to market makers.
Jeff Yan stated that Hyperliquid pursues integrity and "trustworthy neutrality," not accepting private Capital , not dealing with market makers, and not charging fees to any companies.
In a statement on X, Hyperliquid founder Jeff Yan positioned the platform as a “credibly neutral” option amidst the controversy surrounding perpetual DEXs. This stance comes at a time when the community is paying close attention to liquidation incentive structures, Airdrop , and behind-the-scenes agreements.
“Integrity has always been one of Hyperliquid’s core values. The home of all financial activity must be reliably neutral. That means no private investors, no agreements with market makers, and no protocol fees paid to any company.”
– Jeff Yan, founder of Hyperliquid, X
Jeff Yan also addressed the discomfort some users and builders feel with the "no privilege" principles. He argued that a fair prioritization model might contradict the "special treatment" habits Capital in some ecosystems.
"This principle of fairness frustrates some users and builders who are Capital to being treated specially."
– Jeff Yan, founder of Hyperliquid, X
Lighter DEX's FUD revolves around the LIT Airdrop and unannounced wallets.
FUD erupted after an on-chain analysis suggested that five undisclosed wallets received $26 million worth of LIT despite only providing $5 million in liquidation, raising questions about Airdrop allocation and behind-the-scenes deals.
An analyst discovered that five undisclosed wallets received $26 million worth of Lighter (LIT) after providing $5 million in liquidation . In another post, the analyst noted that Jump Trading also received a LIT Airdrop , appearing as part of a market-making deal.
In addition, Kelsier Labs, the Venture Capital run by Hayden Davis, is also said to have received $11.52 million in LIT. TRON founder Justin Sun was also rewarded for being an early LP . The point that caused a community reaction was that some details were not disclosed early enough, according to on-chain researchers.
Following the revelations, ZachXBT mocked and criticized Lighter, alluding to “crime pays.” A community user also expressed concerns about the transparency of the Airdrop.
"This is pretty bad and too obvious. Who knows how many more 'unauthorized' Airdrop addresses there are?"
– Keisan_Crypto, X
Under pressure, the Lighter team issued a statement admitting to having made prior arrangements with LP and market makers. However, some remained skeptical, with one comment sarcastically suggesting the Airdrop allocation was used as a tool for "arranging" with third parties outside of the public points program.
"It's funny that Vlad (the founder of Lighter) seems to think that making side deals and using Lighter's Airdrop allocations as a payment/settlement tool with third parties, outside of the public points program, is normal."
– VietnamPenguin, X
Hyperliquid's market share has fallen below 19% as competition intensifies.
Hyperliquid's market share has fallen below 19% after peaking at 75% in May, indicating that competition from rivals like Lighter is eroding its leading position.
Market share data referenced from Dune shows that Hyperliquid has fallen below 19%. The platform had peaked at around 75% dominance in May, but has shown a clear downward trend in recent months before leveling off around the 19%–20% range.
In this context, the "trustworthy neutrality" message can be XEM as an attempt at brand repositioning: prioritizing fairness and reducing conflicts of interest with market makers, rather than competing through unverifiable allocation/incentive mechanisms. However, the market typically evaluates both operational principles and the experience of liquidation and volume, so the long-term impact depends on the level of user acceptance.
HYPE's price is fluctuating in the 23-26 USD range; it needs to break above 26-27 USD to extend its recovery.
Following Jeff Yan's statement, HYPE rose approximately 2% to $24.8 but remained within the short-term range of $23–$26; a break above $26–$27 could support a rebound if market sentiment improves.
Price movements show that HYPE reacted positively immediately after the statements, but has not yet broken out of the consolidation zone. According to the levels mentioned, $26 and $27 are the upper resistance zones; if broken along with an improvement in overall crypto market sentiment, the price could have further room for recovery. Conversely, as long as it remains stuck in the $23–$26 range, short-term volatility is likely to continue to depend on news and the rotation of funds between perpetual DEXs.
Frequently Asked Questions
Why does Hyperliquid emphasize "trustworthy neutrality"?
According to Jeff Yan, "trustworthy neutrality" means no private investors, no agreements with market makers, and no protocol fees paid to any company, in order to reduce conflicts of interest.
What is the root cause of Lighter DEX's FUD ( fear, uncertainty, and doubt)?
FUD erupted following allegations that five wallets failed to disclose receiving $26 million worth of LIT while only providing $5 million in liquidation, along with information about Airdrop and market-making agreements that were allegedly not transparent from the outset.
How has Hyperliquid's market share changed?
Hyperliquid's market share is said to have fallen from a peak of 75% in May to below 19%, and has recently stabilized around 19%–20% as competition from rivals has increased.
What are the key price levels for HYPE in the short term?
HYPE is described as trading within the $23–$26 range. The $26 and $27 levels are upper resistance levels; breaking above these could support a recovery if overall market sentiment improves.
