Arthur Hayes, co-founder of BitMEX and CIO of Maelstrom fund, believes that Hyperliquid's foray into prediction markets is not just about reducing trading costs, but about capturing the upside. The company's HIP-4 proposal, which introduces event trading on the platform, is expected to make Hyperliquid a dominant player in the prediction market. Hayes argues that the platform's HYPE token is a major differentiator, as it allows users to profit from platform activity, unlike Polymarket and Kalshi.
With a large user base, low trading fees, and robust tech infrastructure, Hyperliquid is well-positioned to succeed. In contrast, Polymarket is still developing its token, and Kalshi's model is focused on compliance and licensing, rather than token incentives. The geographical landscape also favors Hyperliquid, with a strong user base in Asia and no regulatory constraints. Overall, the prediction market is set to become a key battleground, with Hyperliquid's HYPE token potentially giving it a significant edge.