The recent crypto crackdown from the Democratic party, spearheaded by crypto-skeptic Senator Elizabeth Warren, may cast a shadow over the future of the decentralized exchange (DEX) Hyperliquid (HYPE).
This heightened scrutiny stems from concerns surrounding the crypto ventures associated with President Donald Trump’s family, specifically focusing on World Liberty Financial (WLFI).
The senators referenced a report by the nonprofit watchdog Accountable.US, which indicated that WLFI had sold its WLFI tokens to “various highly suspicious entities.”
On-chain sleuth ZachXBT brought attention to the fact that WLFI raised an impressive $550 million during its token sale, but the senators accused it of having raised around $10,000 from illicit sources.
While ZachXBT did not provide specific reasons for why Hyperliquid might be affected, speculation surrounds WLFI’s native token trading on the Hyperliquid platform.
Moreover, Hyperliquid recently incurred a loss of $4.9 million due to the external manipulation of the POPCAT token, where attackers artificially inflated the token’s price using $3 million in Circle’s USDC stablecoin, which could also catch the Senator’s attention if any action against the exchange materializes.
Dubbed “growth mode,” this upgrade reduces all-in taker fees by more than 90%, a move designed to accelerate liquidity formation and incentivize market makers engaging in nascent perpetual contracts.
However, when writing, HYPE trades at $37.31, recording losses of over 9% in the past fourteen days. After reaching a record high of $59.30 earlier this year, the token has retraced by almost 37%, in line with the broader crypto market’s correction.
Featured image from DALL-E, chart from TradingView.com
