The process of selecting a partner to launch the stablecoin Hyperliquid, USDH, has sparked widespread controversy in recent days. Hashib Qureshi, the managing partner at the renowned investment fund Dragonfly, has sharply criticized this process, describing it as a "farce" and hinting that it was designed specifically to favor Native Markets. 🕵️♂️
Details of the controversy 🤯
* Allegation of manipulation: Qurashi claims that Native Markets submitted its proposal to issue USDH shortly after the request for proposals (RFP) was announced, suggesting that it may have had prior knowledge of the plans.
* Custom design: Qurashi sees that the requirements of the RFP process were designed to serve the interests of Native Markets, putting other competitors in a difficult position, as they had to 'scramble' to submit their proposals in a short time.
* Fierce competition: Despite these allegations, the competition to launch the USDH currency has not stopped. Major companies like Ethena, Paxos, Frax, and Agora have presented their proposals, promising to offer huge incentives to the Hyperliquid community, such as allocating reserve profits to support the platform's native currency, HYPE.
* Potential benefits: Hyperliquid aims through this step to reduce its reliance on external stablecoins like USDC and provide its own alternative aligned with its vision. This aims to enhance liquidity, lower fees, and attract more traders to the platform.
My personal opinion and advice to you 💡
This controversy highlights the importance of transparency and integrity in decentralized governance processes. Although the ultimate goal is to develop the ecosystem, any suspicion of unfairness can harm the project's reputation in the long run.
As an investor or trader, it is essential to:
* Follow the developments: Do not rely on a single source of information. Follow all stakeholders to understand the full picture.
* Assess the risks: These allegations may affect community trust in the project, which could lead to fluctuations in the currency's price. Be cautious and evaluate the risks carefully.
* Look for value: Don't just focus on shiny promises, but concentrate on the fundamentals of the proposals presented. Are they sustainable? Do they truly enhance the value of the project?
* Disclaimer: Trading digital currencies involves high risks. This information is for educational purposes only and should not be considered financial advice. Only invest what you can afford to lose.
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