Hype Builds for On-Chain Perpetuals Despite Regulatory Woes
OKX CEO Star Xu lauds Hyperliquid’s achievement in the on-chain perpetuals market. The platform has succeeded remarkably with minimal staffing. However,regulatory hurdles are keeping many exchanges on the sidelines.
Xu’s remarks come as the Hyperliquid token (HYPE) hits a record high of $59.30, marking a 30% surge over a month. OKX Web3 has been experimenting with a similar product as 2023 but hasn’t launched due to regulatory fears.
The US Commodity Futures trading Commission (CFTC) took action in 2023 against Deridex, Opyn, and ZeroEx. These platforms where charged for not registering as required types of financial entities and for offering unauthorized digital asset transactions.
- Options platform Deridex faced penalties.
- Opyn and ZeroEx were also hit with charges.
Clarity is urgently needed, says Xu, so platforms can safely enter the market.More players like Aster are now joining, seeing opportunity in Hyperliquid’s success.
Arthur Hayes, co-founder of bitmex, forecast HYPE could soar to $5,000 by 2028. Hayes’ bullish stance stems from its potential 126-fold growth, highlighting the industry’s exciting prospects despite regulatory barriers.
