DeutschA crash that is likely to resonate for a long time: On Friday (October 10), the crypto market literally collapsed. Billions in assets vanished in minutes, and what seemed like a chaotic earthquake on the exchanges has since concerned not only investors but also the industry itself. While centralized trading platforms like Binance are engaged in damage control, fierce criticism is now coming from the decentralized side – with explosive accusations.
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Jeff Yan, co-founder of the widely used decentralized exchange Hyperliquid, accuses centralized trading platforms of concealing the true extent of liquidations. Binance, the world’s largest crypto exchange, is particularly under scrutiny. Yan stated in a statement, which was disseminated across several crypto media outlets over the weekend: “On Binance, there can be thousands of liquidations within a second, but only one is displayed. In reality, the volume could have been a hundred times higher.”
Hyperliquid Founder Yan Attacks Binance Head-On
The accusations hit a nerve in an already heated debate. According to industry portals like CoinDesk, a total of 19 billion US dollars were liquidated in derivatives trading alone – a figure that already seems enormous on its own. Yan is convinced: What centralized exchanges report is just the tip of the iceberg. Hyperliquid, however, is entirely on-chain, with every transaction verifiable. “Everyone can see what is happening and verify for themselves whether the system remains solvent. Transparency and neutrality are the cornerstones of a new financial architecture,” Yan said.
The message is clear: Decentralized exchanges (DEX) are considered more honest because everything is visible on the blockchain in real-time. Yan is certain that investors will eventually move there. “People will choose transparency – and the others will have to follow suit.”
This assessment is not entirely new. Even Binance founder Changpeng Zhao (CZ) had predicted in the past that DEX could enjoy more trust in the future. Just recently, he supported the Aster platform with former Binance colleagues – a direct competitor of Hyperliquid. CZ has not yet reacted to Yan’s latest accusations, even though he otherwise comments on the market situation almost daily on X.
“100 Times Larger than Reported?”
Meanwhile, Binance is trying to calm the waters. The company announced that it had compensated affected customers with a total of $283 million. Holders of USDE, BNSOL, and WBETH, in particular, are said to have received compensation payments. However, Binance disclaims responsibility: The market chaos had nothing to do with the short-term “de-pegging” of these coins. “The sharp price drop began even before the loss of stability,” it said in an official statement.
Interesting: CZ reacts to memecoin crash: “I didn’t do anything”
Whether technical details or trust issues – the dispute reveals a weakness in the market. Billions vanish in minutes, and the explanations are often contradictory. For investors seeking security, this is not reassuring news. However, the current clash clearly shows one thing: The competition between centralized and decentralized exchanges is getting tougher. And the question of whom investors will ultimately trust more – giants like Binance or challengers like Hyperliquid – is more pressing than ever after this crash. (mck)
