Asks Bob Diamond to characterize the current risk environment given the shift in crypto sentiment since last October.
Scarlet
Bob Diamond
States that over the last week or two, there has been deleveraging and a little bit of a risk-off trade.
Bob Diamond
Explains that Hyperliquid is a layer-one blockchain built for exchanges, and its native token (HYPE) is valued like equity based on price-earnings and volumes, unlike Bitcoin which is a volatile store of value.
Bob Diamond
Highlights that through HIP-3 and Trade XYZ, users are trading NASDAQ, SpaceX, Tesla, and recently silver and gold metals on Hyperliquid, marking a 'sea change' for real-world asset tokenization.
Asks Diamond to convince skeptics that real-world asset tokenization is a problem worth solving.
Scarlet
Bob Diamond
Points to concrete adoption: Silver has been trading on Hyperliquid for 2-3 weeks, with last Friday being the single largest day for silver trading volume in history, where Trade XYZ accounted for 2% of the volume.
Bob Diamond
Notes that while Bitcoin is down 12% and Ethereum down 20% over the last seven days, HYPE is up 40% due to growing volumes and revenue (just under $1B last year).
Asks about adoption from traditional Wall Street given concerns around KYC/AML.
Scarlet
Bob Diamond
States that institutional adoption is real, citing early investments in Circle (stablecoin infrastructure) and that all major banks (JP Morgan, Bank of America, etc.) are investing in and have use cases for blockchain.
Bob Diamond
Predicts that over the next 5 to 10 years, blockchain will emerge as the most prevalent infrastructure in finance at large.
Asks how Hyperliquid will compete in prediction markets against established players.
Scarlet
Bob Diamond
Says HIP-4 will enable prediction markets on Hyperliquid in the next couple of weeks, and that its speed, deep liquidity, and on-chain nature will make it competitive, as seen with silver trading.
Asks why his firm's ticker (PER) is trading below NAV and under what circumstances he'd sell HYPE.
Scarlet
Bob Diamond
Disputes the NAV calculation, says earnings will be discussed next week, and notes the board had approved buying back up to $30M in shares when it was below NAV.
Bob Diamond
Explains the value proposition: 1) HYPE is a revenue-generating business with exploding volumes, 2) 97% of its income is used to buy back tokens (like a share buyback), and 3) it provides U.S. investors access to perpetual futures via debt instruments.