Hyperliquid's HYPE Token Plummets Amid Regulatory Uncertainty

Hyperliquid's native token HYPE has continued its downward trend, dipping to $78.67 on Friday as prominent crypto commentator Ran Neuner flagged regulatory scrutiny as the biggest threat to the decentralized perpetual futures platform.

Numerous attempts have been made by Hyperliquid to expand its services in the US market, but progress remains slow due to unclear compliance requirements and the lack of a formal proposal outlining how 'fully compliant' access would work.

Neuner, founder of Crypto Banter, explained that authorities have just started establishing licensing regimes for centralized crypto businesses, such as Europe's MiCA framework, and once those structures are settled, they will likely turn their attention to decentralized exchanges.

He believes the regulatory uncertainty surrounding decentralized venues like Hyperliquid is more significant than competitive pressure. 'The biggest issue is that we don't know how regulators are going to treat the decentralized exchanges,' he said.