Layer 1 blockchain Hyperliquid’s decentralized exchange (DEX) has a permissionless auction feature that allows teams to acquire the ticker they desire, but the Pixelmon team, which purchased MON on Hyperliquid for $500,000, is left out to dry after its front-end ticker was replaced by Monad’s MON token.
One user known as Akku pointed out the issue earlier today, calling Hyperliquid’s decision to sideline Pixelmon’s MON “very disappointing.”
In Hyperliquid, Pixelmon’s MON has been changed to “MONPRO”, while Monad’s MON is the default MON token deployed by Unit, Hyperliquid’s main tokenization layer.
When viewed in a block explorer, Pixelmon’s MON is still MON and Monad’s MON is UMON (Unit MON), indicating that Pixelmon technically did not lose the ticker it paid about $500,000 for. However, the front end has been overridden by Hyperliquid Labs, casting doubt on the exchange’s decentralization claims.
“Hyperliquid effectively defrauded all purchasers of the Hyperliquid ticker auction by seizing $MON from @monprotocol and passing it on to Monad. The value in itself of buying these spot tickers from Hyperliquid was the immutability of the purchase and Hyperliquid’s front-end UI giving value to that ticker,” crypto gaming investor Grail.eth said on X.
“Hyperliquid needs to get this right. At the very least, they need to choose a better name and issue a full refund, since the amount paid was essentially forcibly withheld,” they added.
Hyperliquid Labs has not addressed this issue publicly. However, team members from the unit intervened and defended the move.
Shadow, who works on Unit, replied to Akku: “The first thing to remember is that a protocol and an app are two different things. The protocol is a decentralized blockchain, and the app is just a website run by a lab…Second, I think it’s pretty clear what happened here. The money grab project failed, the price and volume went to zero, and the team seemed to be abandoned. A second high mindshare, volume project came along, and the HL team thought it was clearly a great use for a front-end label.”
Pixelmon’s MON protocol was launched in May 2024, but its token has struggled since its release. MON launched with a market cap of $53 million, but has fallen 98% from its launch price and is currently trading at a market cap of $6 million.
MON Protocol – CoinGecko
Despite the controversy, HYPE is one of the best-performing tokens today, rising 9% to over $35 amid a broad market rally.
