2026-07-27XThread

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KYC coded. This was always going to happen in some way to $HYPE. Especially with trading US securities etc However, I don't think it will have to be long term bearish. Will update my thoughts on that a bit, and have written why this doesn't have to be the end of the world as some people make it out to be OP. But will add more to this in a bit https://t.co/Pbh2ctI4TD

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Let's say that regulation is imposed on $hype The consensus so far is that it's bearish bc SOME of retail would flee. Only the left tail risk has been largely discussed, but not the right tail. Revenues could even 5-10x. Right now, institutions can't touch Hyperliquid in the US. No KYC means no hedge funds and asset managers. There's compliance around using unregulated offshore derivatives. If we get a compliant path in the US which is likely. Then sure, you might lose some small retail traders, but you're going to end up with billions more from institutions, hedge funds, prop desks, asset managers on chain. Hedging exposure, putting on delta neutral trades, 24/7 trading etc. Lower fees than CME. I think the bull case, is bigger than the bear case with regulation. Jeff is already working on this, there is no doubt about that.
Pentosh1 ↗

new feature observed on hl testnet: stars afaict stars let deloyers make a hip-3 dex address-allowlisted for trading. testnet allowlist size currently is max 10k addresses. non-allowlisted addresses can still submit reduce-only orders / fund accounts. see ktob ("BTC Star DEX") some relevant txs: 0x851e0bc62988fe9e8697042529220801080023abc48c1d7028e6b718e88cd889 (register ktob:BTC) 0x54c1a9c94451ac7e563b0425292214010100c1aedf54cb50f88a551c03558668 (activate star) 0x875b29d555ffdba188d4042529221c01030041baf0f2fa732b23d52814f3b58c (approve trader address) 0x9dbce81f1a86dc269f360425292224010c000004b589faf841859371d98ab611 (unhalt ktob:BTC) 0x3130533baff0a23a32aa0425292ce1010a006b214af3c10cd4f8fe8e6ef47c24 (unapproved address funded) 0x8923485ccfdea73b8a9d0425292d2c01010060426ad1c60d2cebf3af8ed28126 (unapproved address attempts to place order and fails) 0x326fcd720ba84bd833e90425292e06010400e557a6ab6aaad63878c4caac25c2 (approved trader address funded) 0xe070d0c9f5aca692e1ea0425292e33010300e8af90afc56484397c1cb4a0807d (approved trader address places order successfully) can think of a few reasons why this might be useful, but will refrain from speculation for the time being.
rajivpoc ↗