Justin Sun: Hyperliquid is one of the biggest new discoveries of this cycle, and regulation may determine whether CEXs shift to DEXs.

October 19: Tron founder Justin Sun recently discussed Hyperliquid in a 3.5-hour offline conversation with Jin Ming, calling it one of the biggest new discoveries to emerge during this cycle, and saying its launch of U.S. stock perpetual contracts has opened up new imaginative space for the industry. However, as more and more projects move into U.S. stock perpetual contracts, the competition Hyperliquid faces is also intensifying.

Justin Sun also believes that the key to future competition between decentralized exchanges (DEXs) and centralized exchanges (CEXs) lies in how U.S. regulators define Hyperliquid's regulatory boundaries. If it can obtain a regulatory exemption similar to Uniswap's, it is possible that a large number of CEXs will shift to the DEX model to reduce compliance costs and gain greater room for global business expansion, which could also squeeze CEXs that do not transform.

Conversely, if regulatory requirements become stricter, Hyperliquid will also face greater pressure. Hyperliquid's maturity in regulatory affairs and U.S. domestic operations still cannot compare with onshore compliant companies such as Circle. Therefore, the long-term competitive landscape between DEXs and CEXs depends to a large extent on regulators' attitude toward new trading models and the compliance boundaries they set.