MemCast
MemCast / episode / insight
#ftx-collapse1#l1-vision1#origin-story1#prop-firms3
The FTX collapse exposed the need for a decentralized, trustworthy platform
  • The sudden failure of FTX showed how centralized custodians can jeopardize user funds.
  • Jeff observed that crypto’s value proposition turned antithetical when trust was placed in a single entity.
  • This event catalyzed the decision to build a platform where users retain custody and the protocol enforces solvency.
  • Hyperliquid’s mission became “a decentralized platform owned by the people.”
JeffBell Curve00:03:21

Supporting quotes

Quote
00:03:21
“When FTX collapsed that was the sort of impetus to start thinking about what ultimately became Hyperlid.” — Jeff
Quote
00:03:31
“We saw the problems with FTX firsthand and witnessed a mental shift where people realized that crypto is all fun and games until something bad happens.” — Jeff

From this concept

Hyperliquid Origin: From FTX Collapse to L1 Vision

Jeff Yan explains how his background in traditional finance and crypto prop-trading led to the founding of Hyperliquid after witnessing the failure of FTX. The collapse highlighted the need for a truly decentralized, user-focused exchange, prompting the team to evolve from a simple perp DEX into a purpose-built L1.

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