Ethena exits Hyperliquid's USDH stablecoin issuance bid

Huobi HTX reported that Ethena Labs decided to withdraw from Hyperliquid's USDH stablecoin issuance contest after realizing the community's concerns about its identity as a non-local team. According to a release on X on September 11 by Ethena founder Guy Young, the decision was made after direct communication with validators and client, who raised questions about Ethena's focus and fit with the Hyperliquid (HYPE) ecosystem. Young pointed out in the statement that the Hyperliquid community has three main concerns: Ethena lacks local links with the exchange, its product ambitions surpass USDH, and its growth strategy is not exactly consistent with the Hyperliquid ecosystem. "Congratulations to the Native Markets team, you deserve it," Young praised the bidding program that was supported. He added that Hyperliquid’s governance process demonstrates the potential for success of small, community-driven projects regardless of background or financial support.