BlockBeats News, October 17th, according to Bloomberg, Hyperliquid is currently controlled by a small group of insiders, raising questions about its level of decentralization. For supporters including Paradigm and Pantera Capital, it is both a bet on the future of digital finance and a reminder that the entire industry is still operating outside the formal regulatory system.
Essentially, Hyperliquid is a minimalist exchange platform operated by Hyperliquid Labs based in Singapore with a team of about 15 people. As per industry practice, the website frontend blocks U.S. users, but anyone can trade on the blockchain that supports it. The lack of identity verification is precisely its appeal, echoing a rule observed in the early days: exchanges that grow rapidly using a similar model often quickly attract regulatory attention.
If HLP is likened to an engine, then the validator nodes are the control room. Hyperliquid has about 24 validator nodes, while the Ethereum network has over a million. Critics argue that this leads to excessive centralization. The Hyper Foundation controls nearly two-thirds of the staked HYPE—its native token—thus holding significant influence in validator node decisions and governance, although in recent decisions, its nodes have chosen to abstain to respect community consensus.
Kam Benbrik, research lead at blockchain validator company Chorus One, said, “If you control more than two-thirds of the stake, you can essentially achieve control on the chain.” Currently, Washington’s relatively lenient attitude provides Hyperliquid with room to grow. The question is whether it can continue operating outside the regulatory spotlight for long.
