Binance founder Changpeng Zhao (CZ) praised popular decentralized exchange (DEX) Hyperliquid.
In a recent interview with Alex Thorn, Head of Research at Galaxy Digital, CZ said:
I think the Hyperliquide invention is really great. They occupy a niche that Binance cannot compete with. They don’t have KYC.
KYC (know your customer) is part of the mechanisms to combat money laundering (AML) and illicit flows that most centralized exchanges are required to maintain. By extension, they also become useful tools for implementing sanctions by governments.
However, CZ smiled at the DEX, adding that:
They claim they’re decentralized…I would never do what they do, based on what I’ve been through…I guess they have good lawyers.
This was likely a reference to his conviction and Binance’s $4 billion fine for weak AML systems.
Mixed reactions to CZ’s Hyperliquid comment
Some pointed to this comment as an acknowledgment that Hyperliquid is a strong rival to Binance.
But OKX founder Star Xu slammed CZ for not learning his lesson, citing his public support for Aster, another DEX similar to Hyperliquid (HYPE).
Is CZ still lying to the public? As he said, he is fully aware of the legal and regulatory risks. Yet a shell called Aster DEX has been created that appears to copy the HyperliquidX model almost exactly.
It’s worth pointing out that these two have been feuding for a while. It actually seems personal considering Star Xu is CZ’s former boss.
But beyond the personal feud, his statement is true about CZ’s support for Aster as a response to Hyperliquide’s moat.
However, Hyperliquid has a lobbying group, Hyperliquid Policy Center (HPC), whose goal is to promote clarity in US regulations. In fact, it started prohibition sanctioned entities.
HYPE ETF flows rebound
Separately, spot demand for ETFs in the United States rebounded this week. The products have attracted $26 million in the last two days, which is effectively HYPE lifting to another new all-time high of $76.9.
Notably, asset manager Bitwise said it is currently staking 1 million HYPE for its spot ETF (BHYP) product. According to the company, this was part of its 7.8 million HYPE staked through its validation services.
HYPE has been consolidating between $60 and $75 for some time. If overall market sentiment improves after the Fed’s rate decision, bulls could push the altcoin higher. If so, the $80 and $100 levels could be achievable targets.
Final summary
- CZ supported Hyperliquid but warned it could face regulatory pressure like Binance did.
- HYPE price hits new all-time high amid fresh inflows into spot ETFs
