Arthur Hayes Predicts Hyperliquid's HYPE Token Will Return to Zero

Arthur Hayes, the former CEO of BitMEX, has recently made a bold statement regarding Hyperliquid, a decentralized exchange (DEX) built on its native Layer-1 blockchain, HyperEVM. Hayes asserted that Hyperliquid is not truly decentralized and predicted that its native token, HYPE, will eventually return to zero. This statement comes at a time when Hyperliquid has been making significant strides in the cryptocurrency space, having recently announced the live launch of its HyperCore and HyperEVM linking on the mainnet.

The HyperCore and HyperEVM linking, which went live on March 25, 2025, is a significant development for Hyperliquid. This integration brings key decentralized and centralized exchange capabilities to users, streamlining the DeFi ecosystem on the platform. HyperCore powers Hyperliquid’s core network and is essential for its trading offerings, while HyperEVM provides an Ethereum Virtual Machine environment. This allows developers to utilize EVM-compatible tools to build and deploy decentralized applications, facilitating seamless asset transfers, including the native token HYPE.

Despite these advancements, Hayes' criticism highlights a fundamental concern about the decentralization of Hyperliquid. Decentralization is a cornerstone of blockchain technology, ensuring that no single entity has control over the network. Hayes' assertion that Hyperliquid lacks this quality raises questions about the platform's long-term viability and security. If true, this could undermine user trust and potentially lead to a decline in the value of the HYPE token.

The HYPE token has seen volatility in recent weeks, with a 24% increase in the past week, although it traded lower on the day of Hayes' statement. The token's price has dipped 53% from its December peak, reflecting the broader market's performance and the impact of such high-profile criticisms. The overall market performance could further influence the token's future outlook, making it a critical period for Hyperliquid to address these concerns and demonstrate its commitment to decentralization.

Hayes' prediction that HYPE will return to zero is a stark warning for investors and users of the platform. It underscores the importance of thorough due diligence and the need for transparency in the cryptocurrency space. As Hyperliquid continues to develop and expand its offerings, it will be crucial for the platform to address these criticisms and prove its decentralized credentials to maintain user confidence and attract new participants.