Products with a narrow focus sometimes unexpectedly spawn broader ecosystems. When that happens, early participants have a good chance of getting solid returns because it takes time for the rest to internalize what’s going on.

Hyperliquid is one of those products. It’s a futures DEX, a very narrowly focused thing: you were supposed to come there to long or short BTC, ETH, etc. However, after the team added a token standard for Hyperliquid’s chain, things started to get crazy.

It’s not uncommon for a DEX to have a dedicated chain. It’s how heavyweights like dYdX operate. However, none of them has offered shitcoin trading so far. There simply hasn’t been such functionality. 

The ability to create shitcoins instantly attracts top-tier degens and value extractors (a.k.a. “devs”) who start the first wave of an on-chain casino. Then, these early people start spreading information on X, and new people come bringing more liquidity and motivating devs to create new tokens.

There are three main reasons to join the party:

1) You’re still early.
2) Tokens are mostly low caps with potential violent upswings.
3) You’ll get Hyperliquid points that will likely entitle you to the exchange’s future airdrop.

To get started you will need to have some USDC on Arbitrum. After obtaining it, go to Hyperliquid, connect your wallet, and click ‘Deposit’ in the top right corner.

You can then start trading Hyperliquid’s shitcoins right away by clicking the token symbol (‘W’ in the above screenshot), selecting ‘Spot’ and toggling ‘All’ to see all available tokens.

However, that gives you zero information about any of them. If your strategy is rather passive and more about farming Hyperliquid airdrop, you can employ the good old “spray and pray” strategy: disperse your funds between the top tokens by the market cap and forget about it all for a while. If you’re a more active market player, read on.

The network is quite new, but it already has a Telegram bot, Hypurr. The website will set it up for you pretty quickly. You will then need to top up your bot’s wallet. For this, go to Hyperliquid’s ‘Portfolio’ section, and use the ‘Send’ button. If you don’t see your balance when transferring, switch between the ‘Spot’ and ‘Perps’ in the dropdown menu.

You now have a fast and convenient way to trade tokens. The next step is to research them. Join Hypurr’s Telegram group, you will need the ‘Listing Alerts’ and ‘Commands’ subchannels first.

Listing alerts will help you know about new shitcoins. Once a coin gets launched, you will be able to check basic information about it by typing ‘/info TOKEN_NAME’ in the ‘Commands’ subchannel.

If the team’s allocation is 10% or more, there’s a significant chance that they will “rug”, so it’s better to stay away until that allocation goes down. You can then click the ‘Explorer’ link to find out more about the token.

The particularly interesting tap in the Explorer is ‘TWAPs’, it shows large buys that happen slowly over time (Hyperliquid’s auto-buy feature). If you see large TWAPs and good distribution, there’s a high chance that the price will increase soon.

The last step is to go to the respective token’s subchannel. There you will be able to gauge holder sentiment and ask the team any questions. 

Some of the tokens in ‘Listing Alerts’ will have zero circulating supply, meaning that they haven’t been launched yet. You can use Hypurr’s snipe function to buy them straight after listing. For this type ‘/snipe’ and the bot will walk you through the process.

That’s it for today!

Anton,
Head of Research