Prominent HYPE holder: Recommends self-custody of assets on-chain to reduce CEX market manipulation space.

BlockBeats news, November 15 - NMTD.HL, a well-known HYPE holder, stated that centralized trading platforms (CEXs) may use user-deposited platform assets for trading, causing user positions to be liquidated, and then replenish the relevant tokens back to the original accounts or reserves, profiting from the price difference. He also claimed that most tokens deposited in CEXs 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 years and is continuously draining liquidity from the crypto industry, and questioned whether some centralized trading platforms may still have solvency issues.

NMTD.HL called on users to self-custody on-chain assets and transfer BTC, ETH, and other crypto assets on-chain. The more users shift to on-chain trading and trade through decentralized platforms like Hyperliquid, the fewer opportunities centralized trading platforms have to use user assets to manipulate prices and target user stop-losses and liquidate positions.

Centralized platforms are closed systems lacking transparency, and their profit model may involve using user deposits to trade against users and profiting by triggering stop-losses and liquidations. For the crypto industry to achieve long-term development, it must reduce reliance on centralized trading platforms, and Hyperliquid is the key platform driving this industry shift.