Share this article
HyperLiquid Responds to Scrutiny Over Lack of Decentralization, HYPE Slumps 15%
The HYPE token is down by 15% in the past 24-hours.
Updated Apr 10, 2025, 6:01 p.m. Published Jan 8, 2025, 2:01 p.m.
What to know:
- An employee at node operator ChorusOne sparked concerns over a lack of HyperLiquid decentralization and validator fairness.
- HyperLiquid said it plans to make code open-source when it is secure to do so and that it has plans to enhance decentralization.
- HYPE is down by 15% in the past 24-hours.
HyperLiquid, the layer-1 blockchain known for its derivatives exchange, has responded to criticism over an apparent lack of decentralization and issues around validators.
The concerns were initially published by Kam Benbrik, an employee at ChorusOne which operates several nodes across different blockchains. Many of the issues stemmed from HyperLiquid using "closed-source code," which Benbrik claims "jails" node operators.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
HyperLiquid also controls 81% of the staked HYPE and this portion of control has the potential to spur a series of negative outcomes.
"If a single entity controls 1/3 of the stake, they can halt the chain. If they control 2/3 of the stake, they control the network entirely," Benbrik wrote.
HyperLiquid wrote its response on X, addressing the decentralization fears by stating that there will be a "Foundation Delegation Program" that will support high-performing validators thus enhancing decentralization.
On the closed-source code topic, HyperLiquid added: "The node code is currently closed source. Open sourcing is important. Projects open source once development is in a stable state. Hyperliquid ships at orders of magnitude faster than most projects. The scope is orders of magnitude larger than most projects as well. Code will be open source when it’s secure to do so."
The discussion has resulted in the first etchings of negative sentiment around HyperLiquid, a stark contrast to the weeks that followed the launch of its native HYPE token, which rose from $3.57 to $33.5 on a wave of surging trading volumes.
HYPE has since slumped to $21.49, dropping by 15.37% in the past 24-hours alone, according to CoinMarketCap.
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
Mehr für Sie
French Banking Giant BPCE to Roll Out Crypto Trading for 2M Retail Clients
The service will allow customers to buy and sell BTC, ETH, SOL, and USDC through a separate digital asset account managed by Hexarq.
Was Sie wissen sollten:
- French banking group BPCE will start offering crypto trading services to 2 million retail customers through its Banque Populaire and Caisse d’Épargne apps, with plans to expand to 12 million customers by 2026.
- The service will allow customers to buy and sell BTC, ETH, SOL, and USDC through a separate digital asset account managed by Hexarq, with a €2.99 monthly fee and 1.5% transaction commission.
- The move follows similar initiatives by other European banks, such as BBVA, Santander, and Raiffeisen Bank, which have already started offering crypto trading services to their customers.
Top Stories
