What happened? CZ confirmed Hyperliquid’s founder was part of a Binance incubator but there are no ongoing ties.
CZ said Jeff Yan joined Binance Labs’ YZiLabs incubation in 2018, but that project (Deaux) failed and Binance Labs didn’t recoup its investment. He clarified Binance holds no equity or tokens in Hyperliquid and there are no current financial links. The statement was made to quash rumors after old photos and posts suggested a deeper connection.
Who does this affect? Traders, exchanges, builders and investors are the main parties watching this clarification.
Hyperliquid users and traders who were concerned about hidden backers or centralization will want the clarity. Binance and other DeFi projects care because it highlights how past incubations can be misread as present backing. Regulators and investors tracking conflicts of interest, custody and transparency will also take note of the public statement.
Why does this matter? It signals a shifting market dynamic as decentralized perp DEXs take share from centralized exchanges.
Hyperliquid and other perp DEXs are drawing huge volumes, eating into Binance’s derivatives market share and changing where trading fees and liquidity flow. That can lift native token prices, alter fee revenue for exchanges, and accelerate product innovation toward on-chain, noncustodial models. If traders keep moving to fast, transparent DEXs, centralized platforms may face sustained pressure on volumes, margins and market dominance.