Arthur Hayes, co-founder of BitMEX and CIO of Maelstrom fund, believes that Hyperliquid's foray into prediction markets is not just about offering cheaper trading, but also about capturing the upside. Hyperliquid is set to introduce a zero-fee-to-open model for event trading under the Hyperliquid Improvement Proposal (HIP)-4. Hayes argues that the real differentiator is HYPE, Hyperliquid's exchange token, which allows users to benefit from platform activity.
He stated that 'HIP-4 will quickly become a dominant prediction market because of Hyperliquid's large user base, much cheaper trading fees, and very robust tech infrastructure.' Hayes also noted that users who own the $HYPE token can directly profit from their usage of HIP-4. In contrast, Polymarket is expected to launch a token, and Kalshi's model is built around compliance and licensing, without token incentives. The difference in approach may give Hyperliquid an edge in the prediction market space, particularly in Asia where it has a strong user base.