On October 10, 2025, Binance founder Changpeng “CZ” Zhao officially addressed and dispelled rumors of his or Binance’s involvement with the decentralized exchange Hyperliquid. This clarification provides crucial context for traders and institutions navigating the competitive landscape of decentralized derivatives.
CZ Sets the Record Straight
CZ clarified that the speculation likely stemmed from old photographs circulating online. He confirmed that Hyperliquid’s founder, Jeff Yan, did participate in the very first incubation cohort of Binance Labs (then YZiLabs) back in 2018. However, that early project, a prediction market called Deaux, ultimately failed, and the investment was not recovered.
CZ was unequivocal in his statement: “YZiLabs holds no equity or tokens in Hyperliquid”. He emphasized that he had little interaction with Jeff at the time and that Binance Labs currently has no financial stake in the successful DEX. Despite this history, he ended his note on a supportive tone for the broader ecosystem, stating, “Regardless, we support all builders!”.
The Rise of an Independent Challenger
Hyperliquid’s story is one of independent growth. After the failure of his first project, Jeff Yan, a Harvard-educated physicist and former high-frequency trader, went on to build Hyperliquid with a small team of around 10 people. Notably, the project was entirely self-funded, rejecting venture capital to maintain its independence.
This strategy has paid off remarkably. Hyperliquid has grown into a dominant force in decentralized perpetual futures trading, at times processing over $300 billion in monthly volume and capturing about 80% of the decentralized perps market. Its performance is so robust that its trading volume has reached nearly 14% of Binance’s own derivatives volume, signaling a significant shift in the market.
The New Competitive Landscape
CZ’s clarification sharpens the focus on a fascinating new rivalry. Rather than being a Binance project, Hyperliquid now finds itself competing with one. Aster, a new decentralized exchange built on BNB Smart Chain, has strong ties to Binance Labs and is advised by CZ himself. This has led many in the market to refer to Aster as “Binance’s DEX”.
The competition is intense. While Hyperliquid maintains a commanding lead in open interest—a key metric indicating sustained user commitment—Aster has demonstrated massive volume surges, partly driven by large airdrop incentives. This dynamic frames the current “DEX wars” as a battle between Hyperliquid’s organic, infrastructure-focused growth and the narrative-driven, incentive-powered rise of its competitors.
In summary, CZ’s statement cleanly severs any perceived financial links between Binance and Hyperliquid, recasting their relationship from one of backing to one of direct competition. This provides much-needed clarity for the market, underscoring that Hyperliquid’s success is a testament to its independent build-up and technological execution.
