Famous HYPE holders: It is recommended to store assets on-chain by yourself to reduce CEX market manipulation

A well-known HYPE holder NMTD.HL stated that centralized exchanges (CEX) may use the platform assets deposited by users for trading, and after causing user positions to be liquidated, return the relevant tokens to the original accounts or reserves, profiting from the price difference.

He also claimed that most tokens deposited in CEX may face long-term price pressure because users effectively hand over control of asset prices to the platform and its management. NMTD.HL believes that this behavior has persisted for many years, continuously draining liquidity from the crypto industry, and questions whether some centralized exchanges may still have solvency issues.

NMTD.HL urges users to self-custody their on-chain assets and transfer BTC, ETH, and other crypto assets to on-chain. The more users turn to on-chain trading and trade through decentralized platforms like Hyperliquid, the less opportunity centralized exchanges have to manipulate prices using user assets and target user stop-loss and liquidation positions.

Centralized platforms belong to a closed system lacking transparency, and their profit model may involve using user deposits for reverse trading with users, profiting by triggering stop-losses and liquidations. For the crypto industry to achieve long-term development, reliance on centralized exchanges must be reduced, and Hyperliquid is the key platform driving the industry to realize this transition.