A crypto whale who manipulated the price of Jelly my Jelly (JELLY) on the decentralized exchange Hyperliquid still holds around 10% of the token’s total supply, valued at nearly $2 million.
A crypto whale who manipulated the price of Jelly my Jelly (JELLY) on the decentralized exchange Hyperliquid still holds around 10% of the token’s total supply, valued at nearly $2 million. Despite Hyperliquid freezing and delisting JELLY due to suspicious trading activity, five addresses linked to the entity continue to hold significant amounts of the token, according to blockchain investigator ZachXBT. The whale reportedly exploited Hyperliquid’s liquidation mechanism, making at least $6.26 million in profit.
The JELLY collapse is the latest in a string of meme coin-related scandals. Just two weeks earlier, a Wolf of Wall Street-themed meme coin launched by Hayden Davis, co-creator of the MELANIA and LIBRA tokens, crashed by over 99% after it was revealed that insiders controlled 80% of the supply. These incidents have intensified concerns about meme coins, which often gain traction based on hype rather than real utility. Alvin Kan, chief operating officer at Bitget Wallet, noted that such projects remain vulnerable. “Hype without fundamentals doesn’t last,” he said, adding that speculative tokens will continue to be exposed in fast-moving markets.
The incident has also raised questions about the balance between decentralization and intervention. While Hyperliquid’s decision to freeze JELLY trading and delist the token protected users from further losses, it has sparked debate over the level of centralized control in decentralized finance. The platform responded by stating that it remains committed to improving its financial infrastructure, acknowledging that it is “not perfect” but will continue to “iterate and grow” with the help of its community.
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