Hyperliquid has taken significant steps to address concerns in the jelly market regarding the voting process for chain verification devices, aiming to enhance transparency and restore trust among traders. Following a series of questionable actions concerning Jelly permanent contracts, Lipids (Hype) acted by introducing risk management upgrades and committed to compensating affected traders. This was formally announced via a tweet from Hyperliquid on March 27th.
Despite these measures, Bitget’s Gracy Chen criticized Hyperliquid’s actions, likening them to the FTX crisis, and raised concerns about the decentralization of Lipids and vault management. In response, Hyperliquid upgraded its blockchain to allow on-chain verification voting for asset abolition, promoting a more automated and equitable process for such decisions.
The market’s reaction was initially negative, with Hype prices plummeting by 28% following the Jelly incident. However, signs of recovery appeared after the implementation of the new risk management system, with potential bullish movements indicated if prices stabilize around $12.20. Investors have begun to regain hope as Hyperliquid strengthens its security and voting protocols, with further technological improvements anticipated to enhance ecosystem transparency.
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