Crypto: For Hyperliquid's Co-founder, 24/7 Trading Is Not the Advantage of Onchain Markets

By: journalducoin.com|10/03/2026 08:00:00

A dent in the powerful argument for onchain finance. Jeff Yan, co-founder of Hyperliquid, took advantage of a discussion at Korea Blockchain Week to strike the continuous operation off the list of real advantages of onchain markets. Crypto-assets have never needed opening hours, and traditional exchanges are already extending their sessions.

According to him, the real differentiator lies in two things far more spectacular than a clock that never stops: the custody of one's own funds and the complete transparency of the system.

Key Points

  • At Korea Blockchain Week, Hyperliquid's co-founder refuses to see the permanent opening of markets as a distinctive advantage.
  • User custody of funds ranks first among the real contributions of onchain finance, according to him.
  • Complete system transparency follows closely behind, despite limited public interest.
  • Unlisted assets form the next resource, already partially opened by contracts deployed via HIP-3.

Hyperliquid Focuses on Fund Custody Rather Than the Clock

The always-open market has long served as a showcase for decentralized platforms. Jeff Yan now categorizes it as outdated. Crypto has never known an opening bell because the asset class is international by nature, and traditional exchanges are filling the gap. Indeed, Nasdaq is preparing a 24-hour session five days a week while CME has extended its crypto contracts to the weekend.

<< Onchain finance, in its essence, means that users have retained control and custody of their funds. I think that is the number one thing. It really matters in critical moments when there are issues with counterparties, intermediaries, and custodians. >>
Jeff Yan, co-founder of Hyperliquid

Behind the word custody lies a simple mechanism. On a centralized platform, the client deposits their assets into the exchange's accounts and holds only a claim recorded in a private database. Not your keys, not your coins. Hyperliquid, on the other hand, backs margins and positions to addresses controlled by the user's private keys, with an order book recorded onchain.

Transparency forms the second pillar. Jeff Yan readily admits that it has << no mass appeal >> among everyday users.

<< It is extremely important that users can know, in theory, everything that happens in the system. Because this level of trust and neutrality of the system, you simply do not have with a system controlled by a single private organization. >>
Jeff Yan, co-founder of Hyperliquid

However, there are times when transparency has a downside. In March 2025, a trader trapped the HLP community vault on the JELLY contract, and validators had to vote for the forced closure of the market before settling the contract at a price favorable to the platform. The vault ended the episode with a gain of about $700,000, at the cost of an intervention that several observers deemed contrary to the stated neutrality.

Hyperliquid and Private Markets, Next Conquest Ground

Continuous hours still have a precise utility in the context of private listing assets when reference markets are closed. Jeff Yan cites commodities, stocks, and pre-IPO securities that can be traded on Hyperliquid while Wall Street sleeps. These markets rely on HIP-3, the standard that allows any operator to deploy their own perpetual contracts on the platform (this requires locking 500,000 HYPE in staking, which is over $40 million at current prices).

<< Private markets, I think, are a great opportunity, and we are already seeing a bit of that on Hyperliquid. Today, a large part of wealth is created in a way that is really locked up. >>
Jeff Yan, co-founder of Hyperliquid

The lock is regulatory. U.S. law reserves private funding rounds for accredited investors, a status that requires $200,000 in annual income or $1 million in net worth excluding primary residence. OpenAI reached a valuation of $500 billion during a securities sale reserved for its employees and a few funds. SpaceX has been traded over-the-counter for years without any public price existing. Hyperliquid's co-founder does not attribute bad intentions to this filtering, but he sees it as a rent to be opened.

<< Allowing price discovery on a global scale, as early as possible, on these assets that will ultimately be extremely valuable to society and will represent essential parts of the economy, and doing so in a way that is not confined to a single jurisdiction but rather in a sort of global financial system, seems very promising to me. >>
Jeff Yan, co-founder of Hyperliquid

Washington is pushing in the same direction by other means. An August 2025 presidential decree opened 401(k) retirement savings plans to alternative assets, including private equity, and the SEC is working to broaden the definition of accredited investor. On Hyperliquid, exposure can already be taken in seconds from a wallet, with the leverage and liquidation risk that comes with it.

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