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On November 29, 2024, the Hyperliquid platform launched its native token HYPE, marking a significant milestone in the world of crypto airdrops.
The revolutionary DeFi project has distributed 310 million HYPE tokens to its community, equal to 31% of the supply of the new coin.
Nowadays, the overall value given away amounts to over 4.3 billion dollars, a figure that places Hyperliquid in the first position among the most epic airdrops ever.
It enters history, establishing a new standard for future bull and bear distributions of cryptocurrencies.
What is the Hyperliquid platform and how does it work?
Hyperliquid is a high-performance L1 blockchain with an integrated platform for decentralized crypto trading. Its primary goal is to provide an efficient trading experience comparable to major centralized solutions.
Unlike centralized exchanges, it manages an order book on-chain, making the entire operation completely decentralized.
Allows trading cryptocurrencies on the spot market and with derivative products on a wide range of pairs, with a maximum leverage of 50X.
Let’s talk about a platform that is quite scalable and low latency, with a throughput of 20,000 TP/s and a block time of 200ms.
Hyperliquid implements a consensus protocol called HyperbFT, which allows it to meet the growing demands of users in the DeFi landscape.
This last one, developed in the Rust programming language, brings significant benefits by increasing the order execution speed to 2 million operations per second.
As an oracle for the verification of asset prices, Hyperliquid uses various sources that reference the quotations of exchanges like Binance, Bybit, Kraken, etc.
In more detail, the platform’s oracles update the average values of the CEX every 3 seconds and establish the value of the funding rate concerning the perps.
It should be noted that the chain of Hyperliquid is its own VM, therefore not compatible with the Ethereum Virtual Machine. In any case, the project team recently launched an EVM-compatible testnet that will lead to a new stage of on-chain interoperability.
Already from today, however, the application features a bridge that allows users to transfer funds guaranteed in USDC or ETH from Ethereum to Hyperliquid L1.
Users can deposit or withdraw funds using this bridge, which is designed to handle high transaction volumes securely and efficiently.
The negative aspects concern a closed-source code, therefore not verifiable by the community, and a structure still largely centralized with few validators.
Hyperliquid: the largest crypto airdrop in history in terms of distributed value
On November 29, Hyperliquid introduced its native token HYPE to the market, making its mark as the largest and most rewarding airdrop in history.
After about a year since the launch of the platform, the first rewards have arrived for all the early adopters who contributed to its success.
Many farmers have changed their lives forever, achieving 6-figure earnings.
thank you, hyperliquid, for changing my life.
all bad airdrops this year, but u guys proved that you are the best. this is engagement farming, but just so u know u guys are best. pic.twitter.com/bSD4wOQBlC
The distribution was carried out taking into account the points accumulated by the various users, which reflect the volume of traders in correlation to the TVL of the chain.
The airdrop involved approximately 200,000 addresses and 310 million HYPE tokens, initially valued at 1.2 billion dollars with a value of 3.9 dollars at the TGE.
In the days following the launch, however, HYPE grew significantly in the market, even crossing the threshold of 14 dollars for an increase of 350%.
The overall value of the airdrop has also skyrocketed, reaching the crazy record of 4.3 billion dollars.
No other airdrop in history has distributed such a high amount, not even considering the historic launches of Uniswap, Blur, and DyDx.
The average Hyperliquid airdrop is 2,915 HYPE per user, which is about 40,000 dollars at the token’s maximum price.
The average $HYPE airdrop is now worth $28,398.
If mercenary airdrop farmers are the culprit for down-only charts, why is Hyperliquid with one of the largest airdrop allocations up-only?
Furthermore, over 100 individuals/entities hold >400K HYPE Tokens.
The #2 holder owns… pic.twitter.com/EQtL3fetdr
Unlike other tokens launched through similar incentive campaigns, HYPE offers numerous features including governance and staking.
The resource also serves as a gas token for HyperEVM, the network’s execution environment, facilitating the flow of transaction fees.
It is worth noting how after the airdrop Hyperliquid continued to attract a lot of capital, marking new highs in TVL and derivative trading volume.
Source: https://defillama.com/protocol/hyperliquid?tokenVolume=false&derivativesVolume=trueUpcoming airdrops: taking Hyperliquid as an example
The impeccable management of the airdrop and the bullish price action of the HYPE token post TGE testify to the undisputed success of Hyperliquid.
This event will be discussed for a long time and will most likely be analyzed as a case study for the next distributions of cryptocurrencies.
Usually, the projects that have announced an airdrop to their communities have relied on the predatory activity of VC investors who have funded the companies themselves.
Unfortunately, however, the presence of this type of investors has generally contributed to lowering the rewards for users, diluting the value of the token with more players.
Hyperliquid has changed the game and self-funded, freeing itself from the slavery of VC who would have dumped the airdrop in the face of their own community.
This very important detail has helped to eliminate potential pre-existing selling pressures on HYPE, both at launch and in the long term.
It is not a coincidence if the token pumped strongly post TGE.
2. No Venture Capital (VC) Backing:
Unlike many projects that allocate a large portion of their tokens to VC's just to dump on retail users, @HyperliquidX decided to not have a single VC investor.
This meant there was no pre-existing sell pressue immediately or longterm. Not… pic.twitter.com/zHaOLl0cSr
It is also worth noting how Hyperliquid has intentionally distributed a large amount of the HYPE supply to its users.
Unlike many projects that have offered just 5% of the supply as an airdrop, it has allocated even 31% of the total supply.
Normally, such a highly distributed value tends to generate a dump of the token price immediately, but this has not been the case for HYPE!
The project focused entirely on the strength of the community and the creation of a functional and efficient product and was pleasantly rewarded by the farmers.
Very few have sold the airdrop, attracting the attention of the external public and sending the token price to the moon.
With Hyperliquid, a new beautiful chapter has opened in the era of crypto airdrops, where the protagonists are the degen and not the big investors.
Chapeau.
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