The decentralized launch of the Hyperliquid (HYPE) token has heralded in a ‘new era’ for on-chain fair launch cryptocurrencies, following some disappointing outcomes from centralized exchange (CEX) token launches.
The Hyperliquid Token: A Decentralized Airdrop
After setting an all-time high for the most valuable airdrop in cryptocurrency history, Hyperliquid has emerged as a token with significant potential due to its decentralized distribution model. Unlike many other tokens that rely on venture capital (VC) firms and early investors for allocation, HYPE was launched independently by the protocol itself. During an exclusive interview at the Emergence Prague 2024 event, Vitali Dervoed, co-founder and CEO of Composability Labs, commented:
"The Hyperliquid token launch marks the beginning of a new era between centralized exchange listings and on-chain mechanisms."
Dativo further explained that "HYPE didn’t deploy on any centralized venue" but was launched fairely by the crypto community, ensuring transparency and fairness in its distribution.
Source: Cointelegraph/Zoltan Vardai
The Contrast with Centralized Launches: Binance Tokens and Their Results
In contrast to the decentralized approach of HYPE, other cryptocurrencies often face poor outcomes when launched on centralized exchanges due to allocations made to VC firms and early investors. For instance, during the past six months, Binance tokens have seen significant declines in value within the first six months post-launch. As reported by Cointelegraph, over 80% of tokens listed on Binance experienced this decline.
However, not all Binance-listed tokens fared poorly. Memecoin launches on Binance saw a more optimistic trend: 12 out of 15 memecoins launched in the past year posted significant price increases after their live events.
The Hypetoken’s Journey: Price Appreciation and Airdrop Success
Since its launch on November 29, Hyperliquid (HYPE) has seen an extraordinary price appreciation. As of 2:02 pm UTC on January 15, the token was trading at $22.67, and it had risen by over 600% since its launch. This impressive growth has led to the Hypetoken airdrop surpassing $7.5 billion in total value as of January 8.
How Hyperliquid Fits into the Ecosystem
According to the protocol, 31% of its $1 billion HYPE tokens were distributed during the genesis event. Of the remaining supply, 38.8% was allocated for future emissions and community rewards, 6% went to the Hyper Foundation treasury, and 0.3% was granted as grants.
Hypetoken is built on a layer-1 blockchain using a proof-of-stake consensus mechanism that can process up to 200,000 transactions per second (TPS). The HYPE token plays a central role in the ecosystem: it serves as the staking asset for consensus and as the gas token for HyperEVM, which is compatible with the Ethereum Virtual Machine.
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For more details on crypto airdrops, their mechanics, benefits, and risks, you can explore our article: "What is a Crypto Airdrop?"
This article is part of a series exploring cutting-edge topics in the cryptocurrency space. Stay tuned for updates on the latest developments in decentralized finance (DeFi), blockchain technology, and more!
Source: Cointelegraph
