Binance listing manipulated Jelly token spurs FTX-like takedown rumors for HyperLiquid
Binance Futures has listed USD-margined perpetual contracts for Jelly (JELLYJELLY) amid ongoing concerns surrounding alleged market manipulation linked to HyperLiquid.
Binances listing of jelly perpetuals occurs in a tense market environment. Concerns intensified after reports emerged implicating wallets associated with Hyperliquid attacks related to suspicious, highly leveraged trades funded via Binance on the Arbitrum network.
Wallets such as 0xb8ebd8ec41 and 0x1072, active across Ethereum, Base, and Mantle networks, suggest potentially coordinated manipulation strategies, per RunnerXBT and ZachXBT.
These alleged market manipulations have notably affected Jellys price. Trades by manipulators, including the high-profile whale Hyperliquid 50x, reportedly inflated JELLY prices significantly, resulting in nearly $12 million in cumulative losses for liquidity providers such as HyperLiquids vault (HLP).
Crypto marketer Abhi commented,
its no secret centralized exchanges have been bleeding perp volume to hyperliquid, but the latest drama around $JELLY may shift narrative.
Is Binance doing an FTX to HyperLiquid?
Binances decision to introduce leveraged perpetual contracts amid these allegations has intensified scrutiny. Some analysts question the exchanges motivations, subtly suggesting the timing could exacerbate volatility rather than stabilize market sentiment.
Given Binances historical influence in FTXs downfall, this listing raises reflective considerations about the strategic impacts of major exchanges on smaller, competing DeFi entities.
HyperLiquids vaults previously suffered losses exceeding $4 million due to exploits leveraging highly aggressive trading strategies. These repeated incidents have amplified the crypto communitys demand for stricter regulatory frameworks and increased vigilance from centralized platforms facilitating derivative contracts.
The integration of Jelly perpetual contracts at a time when manipulative practices are widely used spotlights ongoing tension between innovation in financial instruments and requisite transparency.
According to Binances official announcements, introducing JELLYJELLYUSDT and related MAVIAUSDT perpetual contracts is standard practice to broaden traders investment opportunities.
Yet, amid current controversies, such moves inevitably lead to speculation regarding strategic intentions. This is especially pertinent given allegations from investigative crypto analysts suggesting Binances potential indirect involvement, highlighted by ZachXBT, who linked specific wallets conducting manipulative trades directly to Binance deposits.
Users have cited Binance Co-Founder Yi He replying Ok, received/got it to a request to list Jelly to take down HyperLiquid as potential evidence that the Jelly listing is part of a strategy to eliminate a competitor.
HyperLiquid has since decided to delist Jelly, stating,
After evidence of suspicious market activity, the validator set convened and voted to delist JELLY perps. []
Note that HLPs 24 hour pnl as of writing is approximately 700k USDC. Technical improvements will be made, and the network will grow stronger as a result of lessons learned. More details will be shared shortly.
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Text source: CryptoSlate
