Hyperliquid Just Priced China's Biggest IPO 6X Above Wall Street

**Scott Melker** (0:01)
Hyperliquid just priced China's biggest IPO 6X above Wall Street. The pre-IPO market on chain still going absolutely wild. In the meantime, Bitcoin back above $65,000.
We got a lot to talk about today, and nobody to talk about it with except for myself, because we failed to book a guest on accident. Let's have some fun.
Good morning, everybody, and welcome to the show. Here we are in my city battle station. You can't see it on screen right now, but there is a stringless AI-generated guitar back there. I love playing guitars with no strings. AI still messes up, but it's actually kind of funny. You remember when you used to do an AI image, you'd have like 12 fingers and Will Smith with the spaghetti and all that. It actually is pretty impressive how far we've come. I remember those early days of AI when it was like, we can only give you factual information up to 2021 Very useful. So yeah, my stringless guitar and I are going to attempt to do a show right now. We thought that we had a guest today, but he's next week.
Fine. Anyways, let's start with the start. Here it is. Crypto market offers pre-IPO bets on Chinese chipmaker CXMT.
So CXMT is kind of the SK Hynix, you know, Samsung in Korea that we've talked about in the past. Massive AI offerings. Well, this is the big IPO that's coming from China of their effectively, their equivalent. And we're pricing it really, really high here on Hyperliquid, which once again, we're seeing price discovery on crypto rails and decentralized exchanges before you can get that actual price discovery or an accurate picture of what's coming in the market on actual exchanges because it's pre-IPO, obviously. So basically, the synthetic contract values the company at roughly $535 billion, more than 6X right now. It's official IPO valuation, highlighting both intense investor enthusiasm for AI memory and the growing role of crypto markets and price discovery for real world assets. They're pricing this at $85.5 billion for the actual IPO. And we're trading here at 526% premium. There's some takes on this before we get into the deeper crypto side. So obviously, looking at IPO, blah, blah, blah, buzz. I don't care about that one. It's honestly disgusting how openly retail gets farmed here. Not bearish these companies. I just think the valuations US retail gets handed on day one are ridiculous. All the reasonable entry upside already happened in private walled off from us. True. By the time we're allowed in, the tag reads, yeah, you can see. So listen, basically the argument here is that in China, Chinese retail gets in at much lower valuations than we do when we get rinsed on IPOs. And we know that only accredited investors in the United States are actually allowed to participate in any of this. When things are already at 100x or in the stratosphere, as it says, by the time we even get the chance to participate, dare I say that China is doing this better than us. But in theory, what Hyperliquid and other decentralized exchanges that offer these pre-IPO valuations, let's see, I think you probably have, I don't think you have CXMT, but we've had a lot of these even on Coinbase, Robinhood and elsewhere, is the opportunity to participate and bet on what happens at the IPO. That said, that means China would be valuing this at a 6x reduction to what we believe here on Hyperliquid, that it's worth in our markets. But this is an interesting take here, an army of traders in China, billions of people, that'd be crazy. They're about to learn about Hyperliquid for the first time. Expect CXMT to be another big splash for Trade XYZ, which is the RDWA platform here that's offering this on Hyperliquid, which just made new all time highs of 5.3 billion in daily volume. We're entering a new era of finance where anyone anywhere can trade anything anytime. So yes, listen, I don't think that your average person is going to make money trading these things. Trading is hard and you all stink at it, especially you.
It's like the guy in the mirror. You're a good trader. It's like a meme. But this is a new era where crypto rails are allowing everybody to participate here in advance. And listen, I mean, there's a lot of people in China, so I can say it's only good news if they are given access to crypto rails and figure out that they can actually trade this stuff in advance. Seems like there'll be a massive arbitrage opportunity here. I highly doubt that this thing IPO is at a 6x the offering. That would be pretty unprecedented, but very possible. In meantime, I used the wrong thing. This one.