DeFi Has Growth Ahead as On-Chain Revenue Surges: Hyperion CEO

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Watch DeFi Has Growth Ahead as On-Chain Revenue Surges: Hyperion CEO - Bloomberg on Dailymotion

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00:00Was that move right at the right time?

00:02We absolutely believe so.

00:03Why?

00:04Well, we took a company that had an operating business that wasn't very successful,

00:08and we developed an entirely new strategy and pivoted into DeFi monetization.

00:12DeFi decentralized finance, which was really big news in 2021,

00:15has even greater tailwinds now because look at the institutions and the technology companies

00:19like Robinhood, J.P. Morgan, Franklin Templeton, all coming into the new frontier.

00:23And our objective with Hyperion DeFi is to build infrastructure

00:26that all of these companies will eventually utilize for their financial systems.

00:30How concerning is the, not lack of interest,

00:33but the declines that we're seeing in digital asset treasury companies overall?

00:36They were having their moment over the summer.

00:38And since then, it's kind of been fading.

00:40Michael Saylor's strategy, we've seen its MNAV decline and get closer to parity.

00:46It's not quite there yet, but it's certainly been an unwinding of these leverage bets

00:50on a lot of these companies.

00:51Yeah, and it's totally understandable.

00:52I think over the summer, there was a lot of euphoria and excitement about

00:55public companies raising a lot of capital to purchase digital assets.

00:58And I think that a lot of them purchased at a time when there was a lot of exuberance.

01:03And now there is a pullback.

01:04People are taking profits.

01:05And these companies are left with the question of, how do we actually generate revenue?

01:08And the way that Hyperion DeFi has differentiated itself is that over the past six months,

01:11we've built four or five different revenue lines that are entirely generating revenue on chain.

01:16Shares down about 75% since July at this point.

01:19So you have to convince investors that there is still value in this.

01:23What's the message to them that you're seeing that they're not seeing right now?

01:29I would say that we're pretty much five or six months into this, right?

01:31And DeFi as an industry, as a sector, still has so much growth available.

01:35And we firmly believe that Hyperliquid, as the blockchain that supports all the financial systems,

01:39is generating the most revenue on chain today.

01:42It's doing 30% of on-chain blockchain revenue.

01:44And Hyperion DeFi, as an operating company building products directly on chain,

01:48we are able to scale with the growth of Hyperliquid.

01:51And infinitely, almost infinitely scalable businesses are where the most value can be created.

01:55What other kinds of companies, of the DATs that are out there,

02:00how are they able to do something similar to what you're doing?

02:03I mean, is it an easy pivot or something where they need to rebuild their structures completely?

02:08So that's where we really differentiate ourselves.

02:09So with Hyperliquid, there's a lot of productive use around the HYPE token.

02:13And what it enables, for example,

02:14you need 500,000 HYPE tokens to deploy non-crypto markets on the Hyperliquid platform,

02:19which originally started with just trading crypto assets.

02:22Through our partners, we've now deployed perpetuals for Tesla, Circle, and other assets like Coinbase.

02:28And users globally are able to trade these 24-7.

02:31So when you have a Q3 records report from NVIDIA,

02:34aftermarket, you're able to get exposure to that upside

02:37without having to be trading on an existing platform.

02:40And so other platforms like Solana or Ethereum just don't have that infrastructure,

02:44nor does the token play such a critical role in establishing that kind of product or infrastructure base.

02:49The company made a huge pivot earlier this year.

02:51I mean, it's like completely different than what it was before.

02:55Is there a concern that investors might think that you might change your mind

02:59and change direction at some point in the near future?

03:02I think there's a lot of conviction in what we've done in the past six months.

03:06We've executed on everything that we've said in our initial roadmap.

03:08And, you know, in the five or six products that we've deployed,

03:11our vision for the end of 2026 is to double that number.

03:13So continuing to build partnerships and establish products that expand the user

03:17and product base for Hyperliquid.

03:19And those financial flows turn into revenues.

03:22And 99% of the revenues generated on Hyperliquid are going back to purchase the Hype token.

03:26So that's another structural tailwind that just does not exist in other blockchain platforms.

03:30This is the crypto show.

03:31We haven't talked about really the price action of the crypto tokens overall.

03:35What's been your observation as you've seen Bitcoin and the other coins,

03:40the altcoins, really tumble from their October highs?

03:43I mean, we're, at least for Bitcoin, now underwater for the year.

03:47I would say to zoom out, right?

03:48Bitcoin was at $20,000 or so back in 2023, 2022.

03:52And it's been on a really incredible run.

03:54I think also Mac7, AI, there's just been incredible wealth creation.

03:58And it's totally understandable to see, you know, investors take some profits.

04:01But businesses keep building.

04:03And Hyperliquid, you know, over the past six weeks, they've launched a network upgrade every week.

04:07And so we've been participating and very actively involved in how this directionally evolves.

04:11And I think that's where the opportunity really lies, is when everyone thinks that it's over,

04:15we really see that's just the beginning.

04:17The low of around $80,000 on November 21st, just a few days ago, was that,

04:22this is for Bitcoin specifically, is that the low this cycle?

04:26It's challenging to say.

04:27I think that, you know, usually we've seen assets when they really pull back,

04:30will pull to certain, you know, previous all-time highs, I think is a good number to reference.

04:36For us, we're building products that are not even tied to the performance of Bitcoin or even hype, right?

04:42Non-crypto assets are generating revenues in dollars just based on pure financial activity on Hyperliquid.

04:46So Hansu, make the call for us because we didn't have time to say this earlier in our show because of the breaking news,

04:51but Bitcoin's on track for its worst month going back to 2022.

04:54And that's when we were in the midst of a real crypto winter.

04:58FTX.

04:59Yeah, exactly.

05:00Anytime we're talking about the price action, and, you know, we mentioned FTX in the fall of Sam Bankman-Fried,

05:04like, that's not a good thing for the asset price.

05:07Are we in or entering another crypto winter?

05:10It could be possible that we're entering crypto winter, but I think structurally things have changed so much, right?

05:14With the launch of the Bitcoin and Ethereum ETFs, there's been change to the composition of the flows under the assets.

05:20And more importantly, the products, the participants like the institutions, and global participation have changed so dramatically

05:25that we expect there to be continued innovation, productization, and accessibility across this industry.

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