Bitwise Introduces 'Gen 2' Crypto Tokens with Hyperliquid's HYPE as a Prime Example

Bitwise Chief Investment Officer Matt Hougan has been making waves in the crypto community with his latest memo, which introduced a new concept called 'Gen 2' crypto tokens. According to Hougan, these tokens are designed to directly capture and return platform revenue to token holders, unlike traditional governance tokens that grant voting rights but have no economic link to protocol earnings.

HYPE is cited as an example of this new generation of tokens, which uses mechanisms like automated buybacks to tie token demand to actual business performance. Hougan estimates that Hyperliquid's annual revenue will reach $800 million to $1 billion, implying a 10-14x price-to-earnings multiple for HYPE.

Despite its impressive growth and adoption, HYPE is trading at a significant discount to traditional trading platforms like Robinhood and CME. However, the token carries higher risk due to regulatory uncertainty, limited price history, and inherent volatility of crypto assets.