Cryptocurrency whales are taking advantage of a dip in the price of the native token of the high-performance hybrid exchange Hyperliquid, which is designed to combined elements of centralized and decentralized exchanges.
According to data from on-chain analysis service Spot On Chain, crypto finance firm Amber Group has spent a total of $7.22 million to buy 342,845 HYPE tokens at an average price of $21.06, leading to a total holdings of the cryptocurrency of 730,749 tokens.
Per Spot On Chain, Amber Group spent near $10 million to accumulate these tokens that are now worth around $16 million.
Over the last three weeks, HYPE saw its price plunge little over more than 40% from around $34.7 to now stand at $20.7 amid a wider cryptocurrency market correction that saw the price of BTC drop from over $100,000 to a $93,000 low.
Hyperliquid bills itself as a hybrid exchange combining elements of centralized platforms like Blanche and decentralized ones like Uniswap. It operates its own blockchain, offering a degree of transparency similar to decentralized exchanges, but it’s maintained by a select group of developers, a trade-off made to achieve high speeds similar to those seen on centralized platforms.
The exchange faced a trader exodus late last year after security expert Taylor Monahan revealed that blockchain addresses she suspected belong to North Korean hacking groups were trading on the exchange.
The North Korean hackers’ trading activity on the exchange is a way for them to probe potential security bugs on the platform, according to Monahan. Hyperliquid’s core developer team addressed the controversy, saying there has been no DPRK exploit — or any exploit for that matter — of Hyperliquid. All user funds are accounted for.”
Despite the exodus Hyperliquid’s trading volumes have grown exponentially over time to the point its cumulative trading volume is now near $630 billion, with the exchange now regularly seeing volumes of between $7 and $8 billion in a day.
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