Key notes
- Hyperliquide was accused of insider trading involving a short sale of HYPE tokens.
- Co-founder Iliensinc denied the allegation, but linked it to a former employee of the protocol.
- The team plans to make HYPE tokens held in the Protocol Support Fund system address permanently inaccessible.
Hyperliquide linked insider trading to a former employee of the company, fired more than a year ago. The company’s co-founder, Iliensinc, was careful to clarify that the actions of this individual do not reflect the standards or values of his team.
Hyperliquide claims to have standards
Decentralized perpetual exchange Hyperliquid was recently accused of shorting HYPE tokens. At first it seemed that whales were responsible for the short circuit.
The so-called hyperliquid “Leviathans” had approximately $3.44 billion in open positions. This includes $1.15 billion in long positions and $2.29 billion in short positions, on the perpetual exchange.
Members of his community pointed out the suspicious situation of the wallet, but the protocol was quick to deny his involvement in such action. Rather co-founder Iliensinc said on Hyperliquide’s Discord channel on December 22, it was the action of a former employee whose mandate at Hyperliquide had ended at the beginning of 2024.
Referring to the address, Iliensinc wrote that “this individual is no longer associated with Hyperliquid Labs and his actions do not reflect the standards or values of our team.”
He went further to explain that Hyperliquid maintains a strict business policy designed to ensure its team operates with a “level of accountability that sets a benchmark for the industry.”
As a reminder, employees and contractors of the protocol are prohibited from engaging in derivatives transactions involving the HYPE token. This includes shorting or going long on the token, Iliensinc wrote.
This explanation comes a few weeks after a community member called cobe.hype linked the address to “one of the Hyperliquid team’s wallets” which sold around 4,000 HYPE tokens, the equivalent of $134,000, in a single day in November.
Hyperliquid stays afloat amid chaos
Amidst this challenge, it is worth noting that Hyperliquid ranked among the top performing protocols this season. Even when it experienced a bear season alongside the broader crypto market, it was one of the few crypto entities to have restored in a trice.
Almost a week ago, he hinted at the creation of HYPE tokens held in the Protocol Support Fund system address. permanently inaccessible. At the time, the fund contained approximately $1 billion worth of HYPE tokens.
This action aims to reduce the total supply of the token and ultimately catalyze a surge in the HYPE price.
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Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about real-world applications of blockchain technology and innovations aimed at driving mainstream acceptance and global integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
