The post the JELLY case shakes the market appeared on BitcoinEthereumNews.com.

Hyperliquid is facing one of the most complex challenges since its inception related to the JELLY token and governance. The sudden delisting of perpetual contracts linked to JELLY triggered a chain reaction of criticism, loss of trust, and market volatility. However, it also became the starting point for a profound renewal of the protocol and its governance system. What happened with JELLY on Hyperliquid? Everything began with suspicious movements in the markets related to the JELLY token. In response to these anomalous dynamics, the validators of the Hyperliquid network voted for the immediate delisting of the perpetual contracts associated with the asset. A drastic decision, but deemed necessary to protect users from potential manipulations and maintain the integrity of the protocol. The removal of the contracts was approved through the internal voting mechanism of the validators. To limit the economic damage suffered by the users involved, the Hyper Foundation has announced an automatic refund program based on on-chain data, excluding however the addresses identified as suspicious or linked to fraudulent behavior. The criticisms and the comparison with FTX The intervention, although justified according to the Hyperliquid team, has raised strong criticisms in the crypto community, sparking a heated debate on transparency and the decentralization of the protocol. Among the most critical voices, stands out that of Gracy Chen, CEO of Bitget, one of the main centralized exchanges in the sector. In a tweet that went viral, Chen compared what happened on Hyperliquid to the collapse of FTX, highlighting how, even in environments that define themselves as decentralized, decision-making power is sometimes concentrated in a few hands. According to Chen, the unilateral delisting action without a clear process of public consensus reflects a governance that is still immature and potentially dangerous, just like in the FTX case, where centralized decisions led…

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Filed under: News - @ March 30, 2025 11:08 am