The influential research firm that initiated the AI stock panic has identified the crypto exchange Hyperliquid and its HYPE token as a fresh ‘compelling’ investment opportunity. Unlike many cryptocurrencies, Hyperliquid generates actual cash flow and incorporates a token buyback mechanism, according to Citrini Research. Key points to consider: — Citrini Research, the firm responsible for the AI-driven market turmoil in February, has spotlighted Hyperliquid and its HYPE token as a promising investment. — Hyperliquid, a premier decentralized platform for perpetual futures, has accrued around $1.06 billion in annual fees, with over 90% of these funds allocated to a buyback initiative that has acquired more than $2 billion in HYPE since January 2025. — The value of HYPE is increasingly linked to Hyperliquid’s trading activity and revenue, especially as U.S. regulators like the CFTC begin to permit crypto perpetual futures products, prompting major exchanges like Coinbase and Kraken to compete in this arena. Citrini Research, which ignited fears of an artificial intelligence bubble in February, has now included the crypto exchange Hyperliquid and its token in its latest report, labeling it a new ‘compelling’ idea. The firm noted that, ‘in contrast to the majority of meme-based cryptocurrencies (including bitcoin), HYPE yields genuine cash flow. Moreover, there is a buyback mechanism in place,’ according to an excerpt shared via social media, which is part of a paywalled report. Hyperliquid operates as a blockchain-based exchange that facilitates trading of perpetual futures for cryptocurrencies and other assets, including commodities and private stocks. Its associated token, HYPE, has emerged as one of the top performers this year, despite the broader digital asset market experiencing significant downturns. The platform has reported $1.06 billion in annual fees and approximately $220 billion in 30-day perpetual trading volume, according to DeFiLama data. ‘More than 90% of the fees generated by the platform are redirected to the Assistance Fund [the token buyback vehicle], which is then systematically utilized to buy HYPE on the open market,’ the Citrini Report elaborated. ‘The structure itself is appealing, but what’s even more remarkable is the sheer scale of the Fund. Since its inception in January 2025, total purchases have exceeded $2 billion,’ the report continued, indicating that the buyback has represented nearly half of all token buyback activities within the crypto sector last year. Hyperliquid has established itself as a leading player in decentralized perpetual futures trading, commanding a significant portion of on-chain derivatives volume. The investment case for HYPE is increasingly intertwined with the operational performance of the exchange; however, some analysts caution that the buyback model heavily depends on consistent trading activity and may face challenges if derivative volumes decrease. Nonetheless, the company’s capacity to generate considerable revenue distinguishes it from much of the crypto landscape, where many token valuations are predominantly speculative. Beyond its business model, Hyperliquid’s leading position in global markets has spurred a wider push into perpetual futures, which have traditionally faced restrictions for American traders due to regulatory barriers. Last month, the Commodity and Futures Trading Commission (CFTC) allowed certain crypto perpetual futures products to be offered under U.S. oversight, prompting a competitive race among exchanges, including Kraken and Coinbase (COIN), to meet the demand in a market that comprises the majority of global crypto trading activity. While Coinbase has already broadened its perpetual offerings in the U.S., Kraken is expected to launch its own product later this month.