Hyperliquid Could Be Bringing Perpetual Futures to US Customers Soon. Is HYPE a Buy, Sell, or Hold Right Now?
Key PointsHYPE’s perpetual futures are still banned in the U.S., UK, and China.
Hyperliquid (CRYPTO: HYPE), the native token of the Hyperliquid decentralized exchange (DEX), has seen its value more than triple this year. This surge was primarily driven by expectations that U.S. regulators would eventually permit its perpetual futures (perps) on the U.S. market.
Perpetual futures, or perps, are financial contracts that allow traders to speculate on the future price of an asset, such as a cryptocurrency, without owning the asset itself. They are designed to mimic the behavior of traditional futures contracts, but with perpetual terms, meaning they do not have an expiration date and can be held indefinitely.
Hyperliquid's Layer-1 (L1) blockchain functions as a high-speed, independent digital trading exchange for cryptocurrencies. Unlike conventional exchanges like Coinbase (NASDAQ: COIN), where users buy and hold the actual coins in their digital wallets, Hyperliquid's exchange holds the users' coins on the decentralized blockchain. This approach eliminates the risk of hacks and theft associated with storing large amounts of cryptocurrency in a single wallet.
Moreover, Hyperliquid matches trades almost instantly and charges no transaction fees on individual orders, making it a much more cost-effective alternative to Coinbase for most trades.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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