According to Arthur Hayes, the co-founder of BitMEX and CIO of the Maelstrom fund, Hyperliquid's entry into the prediction market is not just about offering cheaper trades, but about who benefits from the upside. The Hyperliquid Improvement Proposal (HIP)-4 introduces event trading on the platform with a zero-fee-to-open model.
Hayes believes the real differentiator is Hyperliquid's exchange token, HYPE, which allows users to profit from platform activity. This sets it apart from competitors like Polymarket and Kalshi.
With a large user base, lower fees, and robust infrastructure, HIP-4 is poised to become a dominant prediction market. The HYPE token, with a fully diluted valuation of around $38 billion, provides users with a way to benefit directly from their usage of the platform, unlike Polymarket and Kalshi. While Polymarket is expected to launch its own token, and Kalshi's model is built around compliance and licensing, Hyperliquid's approach may give it a competitive edge, particularly in Asia where its user base is strong and regulatory constraints are fewer.