Hyperliquid, a decentralized exchange for perpetual contracts, is shaking up the crypto industry by challenging the belief that venture capital is crucial for success. It emphasizes its technology and community-first approach instead. The Hyper Foundation, which oversees Hyperliquid’s development, has announced a token generation event, set for early Friday at 2:30 AM ET, along with an airdrop.

Over the past year, Hyperliquid has grown from an exchange into a full financial system, claiming its liquidity now rivals that of top exchanges. In October, it surpassed Jupiter and SynFutures, achieving a record $1.39 billion in daily trading volume, according to DeFiLlama derivatives data. Hyperliquid’s upcoming Genesis event is projected to be one of the largest in DeFi, as the 310 million HYPE tokens allocated for the 31% community airdrop would be worth nearly $1 billion, based on data from Aevo, a derivatives tracking platform.

Once launched, the HYPE token will integrate directly into Hyperliquid’s core operations. It will provide functionality for staking, transaction fees, and enabling direct USDC trading pairs on the platform’s spot market. What sets Hyperliquid apart is its use of a blockchain specifically designed for high-speed trading and financial applications.

The platform employs HyperBFT, a proof-of-stake system that processes transactions almost instantly while maintaining security through network consensus. Hyperliquid is currently ranked as the top decentralized exchange for derivatives, with a 24-hour volume of $1.6 billion, according to DeFiLllama data.

Its all-time volume stands at approximately $428 billion. In a blog post, Hyperliquid announced there would be “no allocations for private investors, centralized exchanges, or market makers,” a departure from how other projects typically allocate during launch, which often includes significant portions reserved for early backers and project leaders.

The exchange claims to prioritize the community, with no investors, paid market makers, or fees to any company. However, roughly 24% of the tokens will be allocated to current and future core contributors of the network, and an additional 6% will go towards the “Hyper Foundation budget.”

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