Hyperliquid Strategies Inc. has made waves by filing an S-1 form with the US SEC, bridging DeFi and TradFi. The goal: to raise a staggering $1 billion, with a twist – part of it will go towards acquiring its native token, $HYPE.
The DEX Hyperliquid filed an S-1 form with the SEC this week to raise up to $1 billion. The announcement, which sent shockwaves through the crypto ecosystem, details an offering of 160 million shares to the public. The proceeds from this sale will be used to establish an institutional treasury composed of HYPE tokens.
This strategy is unprecedented for a DeFi protocol and is viewed by many as a first step toward creating a regulated financial product, similar to an ETF, for its own token.
By choosing the regulatory path of an S-1, Hyperliquid isn’t just seeking capital; it’s pursuing legitimacy. This approach signals a willingness to comply with traditional financial market requirements, potentially opening the door to a new wave of institutional investors who have been hesitant to directly expose themselves to digital assets.
The market has responded with undisguised optimism to this announcement. The HYPE token has registered an 8% increase from yesterday’s low of $34.7, currently trading around $38.5. This positive reaction shows that investors view this fundraising as a major bullish catalyst that could create sustained buying pressure on the token.
However, the road ahead isn’t without obstacles. The first significant resistance level is at the Order Block (selling zone and therefore resistance) at $41.
Traders treat the POC as the price area where the greatest volume occurs, often acting as a magnet or friction point. Buyers have crossed the short-term POC at $38.5, confirming the short-term bullish momentum;
If buyers manage to break through this level, the next target will be the psychological and technical resistance at $45. A move above this threshold could unleash HYPE’s bullish potential and send it testing higher peaks.
In conclusion, Hyperliquid’s bold approach is a strong signal for the entire industry. By building a regulatory bridge between DeFi and Wall Street, the project is not just securing its financial future; it’s blazing a trail that other protocols might be tempted to follow. The market reaction is positive, but the battle for $41 is just beginning.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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