Binance Futures has recently added USD-margined perpetual contracts for Jelly (JELLYJELLY), amidst rising apprehensions regarding alleged market manipulation associated with HyperLiquid.
The introduction of Jelly perpetual contracts by Binance takes place in a fraught market climate. Worries heightened after reports surfaced that connected wallets to “Hyperliquid attacks,” pointing to dubious, highly leveraged trades backed by Binance on the Arbitrum network.
Wallets such as 0xb8ebd8ec41 and 0x1072 have been active on Ethereum, Base, and Mantle networks, hinting at potential manipulation tactics, according to RunnerXBT and ZachXBT.
These purported market maneuvers have had a noticeable impact on Jelly’s pricing. Operations by some market players, including the notable entity “Hyperliquid 50x,” have reportedly inflated JELLY prices drastically, leading to nearly $12 million in total losses for liquidity providers such as HyperLiquid’s vault (HLP).
Crypto marketer Abhi noted,
“It’s well-known that centralized exchanges have been losing perpetual volume to HyperLiquid, but the recent events surrounding $JELLY may alter the narrative.”
Is Binance acting adversarially towards HyperLiquid?
Binance’s choice to launch leveraged perpetual contracts amid these allegations has led to increased scrutiny. Some analysts raise concerns regarding the exchange’s intentions, implying that the timing might exacerbate volatility rather than provide market stability.
Considering Binance’s historical influence on FTX’s collapse, this listing prompts reflection on how major exchanges can impact smaller, competing DeFi projects.
HyperLiquid’s vaults have reportedly faced losses exceeding $4 million due to exploits that leveraged extremely aggressive trading strategies. These recurring issues have heightened calls from the crypto community for stricter regulatory oversight and greater diligence from centralized platforms offering derivative products.
The launch of Jelly perpetual contracts at a moment when manipulative practices are prevalent underscores the ongoing struggle between financial innovation and the need for transparency.
According to Binance’s official communications, the introduction of JELLYJELLYUSDT and related MAVIAUSDT perpetual contracts is a standard effort aimed at broadening investment opportunities for traders.
Nonetheless, amid the current controversies, such actions inevitably lead to speculation about the underlying strategic motives. This is particularly relevant in light of allegations from investigative crypto analysts, with ZachXBT highlighting links between specific wallets involved in manipulative trades and Binance deposits.
Users pointed out that Binance Co-Founder Yi He’s reply “Ok, received/got it” to a suggestion for listing Jelly to undermine HyperLiquid could be potential evidence that the Jelly listing is part of a strategy aimed at removing a competitor.
In response, HyperLiquid announced its decision to delist Jelly, stating,
“Following evidence of suspicious market activities, the validator set met and voted to delist JELLY perpetuals. […]
As of this writing, note that HLP’s 24-hour P&L is approximately 700k USDC. We will implement technical improvements, and our network will emerge stronger as a result of the lessons we’ve learned. More details will be provided soon.”
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