Kain Warwick, founder of Synthetix, has warned that Hyperliquid’s HYPE token offers no legal protections to holders, unlike traditional equities which represent a legal claim on a company. The token, trading between $80 and $98, relies on code rather than contracts. Warwick also criticized the 50% fee split between the platform and external market makers, calling it potentially unsustainable for revenue growth. Approximately 97 to 99% of trading fees are directed toward token buybacks and burns, supporting HYPE’s price. About 31% of the total supply of 1 billion tokens was distributed via an airdrop to 94,000 early users, while the team retains 23.8% with a vesting schedule extending until 2028.
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