CZ Calls Hyperliquid 'Awesome,' OKX Founder Calls CZ 'Clueless' 🤺

Binance founder Changpeng Zhao described decentralized exchange Hyperliquid as "actually awesome" in a recent interview with Galaxy Digital Head of Research Alex Thorn, saying the platform "occup[ies] a niche that Binance cannot compete with." Zhao highlighted Hyperliquid's lack of know-your-customer requirements as a structural advantage centralized exchanges cannot replicate, but added with a smirk, "They claim they're decentralized… I would never do what they do, given what I've experienced… I assume they have good lawyers." The comment appeared to reference his own sentencing and the $4 billion Binance fine for weak anti-money laundering systems.

OKX founder Star Xu publicly pushed back on Zhao's remarks, accusing him of failing to learn from past regulatory issues and pointing to Zhao's prior public support for Aster, a separate decentralized exchange. Xu questioned whether Zhao was "lying to the public again," noting that "a shell called Aster DEX was created that appears to copy the HyperliquidX model almost exactly." The two founders have a personal history, with Xu having previously been Zhao's employer.

Despite the rivalry, Hyperliquid has moved to expand its regulatory footprint. The project has established a lobbying arm called the Hyperliquid Policy Center aimed at securing U.S. regulatory clarity and has begun banning sanctioned entities on its platform. The U.S. spot ETF tied to the token, meanwhile, attracted $26 million in inflows over the past two days.

Bitwise, which issues the spot ETF under ticker BHYP, disclosed that it currently stakes 1 million HYPE as part of a broader 7.8 million HYPE delegated through its validator services. The token HYPE hit a new all-time high of $76.9 during the rebound in ETF demand, having previously consolidated in the $60-$75 range. Broader market direction now hinges on the upcoming Federal Reserve rate decision.