According to Arthur Hayes, co-founder of BitMEX and CIO of Maelstrom fund, Hyperliquid's foray into prediction markets is not just about offering cheaper trading, but also about capturing the upside. The company's zero-fee-to-open model for event trading under HIP-4 is expected to be a game-changer. Hayes believes that the real differentiator is Hyperliquid's exchange token, HYPE, which enables users to profit directly from platform activity, unlike Polymarket and Kalshi.
With its large user base, lower trading fees, and robust tech infrastructure, Hyperliquid is poised to become a dominant player in the prediction market. The company's token-based model also gives it an edge over competitors, particularly in Asia, where crypto-native trading is prevalent. In contrast, Polymarket and Kalshi face regulatory hurdles and geographical constraints, which may limit their growth.
Hayes' argument highlights the importance of token incentives in driving platform adoption and user engagement, and how Hyperliquid's HYPE token may be the key to its success in the prediction market.