Weiss Crypto makes a two-sided case for the HYPE token of Hyperliquid: it is bullish on protocol-driven tokennomics, but it is clear that investors should not mistake momentum for the absence of risk. In a series of posts over the past few days, the research center argued that the buy-and-burn HYPE structure remains a fundamental force as tokens open, competition and regulation remain firmly on the table.
Hyperliquid faces 3 key risks and a Bullish case
The warning was specific. “But there are some HYPE risks investors should consider,” Weiss Crypto wrote on Wednesday, before naming three areas to watch. The first is the extension of the offer from the opening of the offeror. “April will see the issuance of 9.92 million HYPE tokens, which is modest compared to the platform’s trading activity.” Even though it was classified as small, the point was clear: the new supply is still important, especially for a token whose bullish narrative is heavily dependent on the cyclical slowdown.
Weiss also pointed to the risk of market structure. “Right now, Hyperliquid has a clear first-mover advantage. But that doesn’t mean a powerful disruptor won’t emerge.” That finds a common tension in the crypto trading infrastructure. Early dominance may look strong, especially when money, work and attention reinforce each other, but it may also invite direct attacks from better-financed or aggressive competitors.
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The third risk is control. “American citizens will likely remain initially restricted — and the industry’s growth slowed — until the law is repealed.” In other words, Weiss sees the fixables market as lagging at the moment, not because the product lacks traction, but because access and broader expansion of the sector remain tied to unresolved policy issues.
That warning came alongside a more constructive argument about HYPE itself. In a separate post created alongside the infographic, Weiss called the token design “Tokenomics done right.” The figure described what we labeled a “dynamic feedback loop,” a flywheel in which increased platform activity leads to more transactions, more protocol costs, more token purchases, and less circulating supply.
The essence of that thesis is remittances. According to the infographic, “97% of trading capital is used to buy HYPE tokens.” From Weiss’ framework, those machines are what transform the use of the platform into direct token support. As activity increases, “repurchases accelerate,” “circulating supply decreases,” and the token’s “appreciative power” increases and the opportunity to draw more activity. Weiss also highlighted the scale of the machine with a headline figure: “By 2025 alone, the protocol has burned about $1 billion in HYPE tokens.” That number sits in the middle of a bullish case.
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Another post by Weiss tried to show that demand works during a stress event in the market. “On Sunday, as tensions flared in the Middle East, Hyperliquid hit a milestone. It generated $1B+ in oil-related trading volume. Why? Because traditional oil markets were closed for the weekend. Fixed markets never sleep.”
Weiss matched that post with Bitwise CIO Matt Hougan’s earlier comment that when President Donald Trump announced the attack on Iran at 2:30 a.m. Sunday, American, European and Asian markets were closed, while “HYPE was on.”
Taken together, the message from Weiss is not overwhelming, but nuanced. The outlet sees Hyperliquid as a living example of crypto-infrastructure capture where legacy markets are unavailable, and considers HYPE’s payment and heating design to be unusually strong.
At the same time, it shows that even a token backed by an active buyback loop is still exposed to open calendars, conflicting platforms and the slow reality of US regulation.
At press time, HYPE traded at $37.87.
The featured image was created with DALL.E, a chart from TradingView.com
