Crypto traders paid annualized fees of 8,700% to service a leveraged, synthetic bet on the valuation of Anthropic. 

Even as the privately-held AI giant neared a $1 trillion valuation, some paid 1% per hour, imputing an expected Anthropic rally to $88 trillion within a year, just to cover the cost of their leveraged long.

For context, the most valuable publicly-traded company in the world today, Nvidia, has a market capitalization of $5.2 trillion.

Worse, the market they selected doesn’t actually deliver real Anthropic shares.

A combination of arcane terminology and abbreviations, off-page terms of service, a small open interest cap, and a simplified interface for trading compressed those disturbing realities into an easy-to-click “Buy” button alongside a flickering price chart.

Normally, short-sellers pay their brokers for the privilege of loaning out shares to sell first, with the hopes of buying back cheaper later.

In the topsy-turvy world of crypto, buying long exposure to Anthropic was even more expensive than shorting over the weekend.

Paying 8,700% annualized fees to bet on Anthropic

Because Anthropic isn’t publicly traded, crypto exchange Hyperliquid lists a USDH-denominated contract using the Ventuals deployer on $7.5 million worth of Anthropic open interest partially based on Notice’s estimate of Anthropic’s valuation.

If you didn’t understand the above sentence, you haven’t read the full terms of service for ANTHROPIC on Hyperliquid and are probably no different than many traders who bought it anyway.

USDH calls itself a stablecoin, even though it’s traded between $0.72 and $1.11 over the past year.

In addition, Notice doesn’t actually know the real-time value of Anthropic.

Moreover, the whole artifice relies on two proprietary altcoins plus innumerable service provider risks.

Despite these stratospheric risks, traders paid up to 1% per hour to use 3x leverage on Anthropic’s private valuation. 

For most of the past two days, the contract traded well above the Notice oracle’s reference price, forcing longs to pay hourly funding rates to shorts. Those payouts briefly made shorting one of the most-hyped AI companies a de facto, high-yield income strategy.

Don’t worry, funding is capped at 4% per hour

Incredibly, Hyperliquid settles funding rates hourly and caps them not at 1% but at 4% per hour.

On Hyperliquid’s ANTHROPIC, the hourly rate exceeded 1.5% over the weekend, equivalent to annualized fees in the five-digit percentages.

Across a 48-hour period this weekend, longs paid shorts over 15% of their position size in funding alone. That isn’t a typo. A $10,000 long with no Anthropic valuation movement at all would have bled $1,500 to the short side within two days.

Disclosures explaining these losses exist on off-webpage disclosures. In essence, the gap between the contract’s mark price and Notice’s oracle reference drives the funding rates on Ventuals contracts on Hyperliquid.

On the ANTHROPIC Ventuals contract, Notice’s oracle sat near $934 while Hyperliquid Ventuals traders paid over $1,060.

Each unit on Ventuals represents $1 billion of valuation, so those numbers translate to a $934 billion oracle-implied valuation relative to a $1.06 trillion Hyperliquid exponential moving average or “mark” valuation.

That 13.6% premium of mark over oracle, which varied by the hour, is what generated the lavish payouts to anyone willing to short Anthropic.

Key Takeaways

• Hims & Hers Health delivers Q1 2026 financial results following Monday’s market close on May 11
• Wall Street forecasts revenue between $616M and $619M, representing merely 5.2% annual growth — a dramatic slowdown from the 111% expansion witnessed in Q1 2025
• The telehealth platform secured an agreement with Novo Nordisk in March, obtaining authorization to distribute branded Wegovy and Ozempic — however, sales commenced March 26, limiting first-quarter financial contribution
• Earnings per share projections land at 3–4 cents, reflecting an approximately 90% decline compared to last year’s results
• Shares have surged nearly 50% during the previous month despite substantial short interest exceeding 35% and a predominantly neutral analyst consensus from 17 Wall Street firms

Heading into Monday’s quarterly disclosure, Hims & Hers Health (HIMS) trades at $28.46, posting gains of roughly 32% across the last 30 days and climbing approximately 77% from its February 27 fifty-two-week bottom. Yet the telehealth stock remains underwater for 2026, declining more than 23% year-to-date.

Hims & Hers Health, Inc., HIMS

Analysts characterize this upcoming report as a “transitional quarter.” Revenue projections cluster around the $616M–$619M range, translating to merely 5.2% year-over-year advancement. This marks a significant deceleration from the exceptional 111% revenue expansion HIMS achieved during the comparable period last year.

The dominant narrative surrounding this earnings release centers on the company’s strategic transition from compounded GLP-1 weight-management medications to branded Novo Nordisk alternatives. Following Novo Nordisk’s withdrawal of its patent litigation on March 9, both organizations finalized an arrangement granting HIMS distribution rights for Wegovy and Ozempic via its digital healthcare platform.

Timing presents a complication, however. These branded pharmaceutical products became available through the platform starting March 26. Since the first quarter concluded March 31, meaningful revenue contribution will probably materialize in Q2 reporting instead.

Subscription Metrics Under Close Examination

Wall Street will scrutinize subscriber acquisition and retention metrics carefully. HIMS surpassed 2.5 million active subscribers approaching the conclusion of 2025 — representing 16% growth from the 2.2 million subscriber count recorded at 2024’s end, and substantially exceeding the 1.5 million subscribers from late 2023.

Customer retention carries equal importance. Approximately 82% of platform users continue their subscriptions past the three-month threshold, while roughly 90% of recurring revenues originate from the established customer cohort. Should HIMS demonstrate stable or expanding subscriber figures, it reinforces confidence in full-year financial projections.

Profitability expectations remain modest — consensus estimates place earnings per share at just 3 to 4 cents, marking roughly a 90% annual contraction. While this deterioration may already factor into current valuations, any downward surprise could intensify selling pressure in a security already experiencing significant short-seller activity.

Wall Street Maintains Reserved Outlook

Among the 17 analysts providing HIMS coverage, four assign Buy ratings, 12 recommend Hold positions, and one issues a Sell rating. The consensus twelve-month price objective stands at $31.86 — approximately 12% above Friday’s closing price of $28.46.

Short interest positioning remains substantially elevated above 35% of available float, equating to approximately 70 million shares held short. With a volatility beta of 2.43, this equity demonstrates pronounced price movements in either direction.

Institutional accumulation accelerated during Q1, with institutional selling activity 88% below buying volume — marking a significant reversal from the considerable institutional outflows observed throughout Q4 2025.

The Food and Drug Administration has additionally proposed eliminating semaglutide, tirzepatide, and liraglutide from its 503B bulks inventory, which would retrospectively validate HIMS’s strategic decision to abandon the compounded GLP-1 segment.

HIMS has fallen short of Wall Street’s revenue projections on multiple occasions throughout the previous twenty-four months. Financial results are scheduled for release following Monday’s trading session on May 11.

Disclosure: The author of this story owns shares in Strategy (MSTR).

When executive chairman Michael Saylor confirmed on Strategy’s (MSTR) Q1 2026 earnings call on May 6 that the company was prepared to sell bitcoin, it appeared to mark a shift for the world’s largest publicly traded corporate holder of the cryptocurrency. But the move would not be unprecedented. In December 2022, Strategy sold bitcoin for tax-loss harvesting purposes — the same rationale the company now appears to be signaling to the market once again.

On Dec. 22, 2022, Strategy sold 704 bitcoin for approximately $11.8 million at $16,776 per coin, but immediately repurchased 810 bitcoin two days later.
The sale was designed to carry back capital losses against previous gains and generate a tax benefit. A tax loss harvesting event.

“MicroStrategy plans to carry back the capital losses resulting from this transaction against previous capital gains, to the extent such carrybacks are available under the federal income tax laws currently in effect, which may generate a tax benefit”.

Bitcoin fell 23% in Q1 2026, from $87,500 to $67,700. Under FASB fair value accounting rules adopted Jan 1, 2025, Strategy marks its entire bitcoin holdings to market every quarter, in Q1 posted a $12.54 billion loss which pushed unrealized losses directly through the income statement and generating a $2.2 billion deferred tax asset across its higher cost basis holdings.

According to the MSTR earnings call, assuming an $80,000 bitcoin price, Strategy has purchased over 434,000 BTC above $80,000 generating a $7.6 billion unrealized loss and a $2.2 billion deferred tax asset at a 29% tax rate.

If bitcoin recovers and Strategy sells appreciated bitcoins, that $2.2 billion tax can offsets future gains.

The primary goal for the company is to increase “bitcoin per share” which is the ratio of Strategy’s total bitcoin holdings divided by its total diluted shares outstanding.

The use of proceeds from the bitcoin sale is to retire the $8.2 billion in convertible debt, purchase MSTR common stock when the multiple to net asset value falls below 1.22x or fund $1.5 billion in annual dividend obligations from its perpetual preferred stock Stretch (STRC).

MSTR is up 1% in pre-market trading, while bitcoin trades above $81,000.

• The Osmosis crypto price has surged on extreme trading volume and liquidity inflows.
• Cosmos governance rejection kept Osmosis independent and stable.
• Price now hinges on holding $0.065 and breaking $1 resistance.

The price of the Osmosis (OSMO) crypto has jumped sharply by nearly 200% in 24 hours, moving from a low near $0.03383 to around $1.

This sudden rally has placed the token among the strongest performers in the crypto market today, with trading activity and ecosystem developments both playing a major role in the move.

Notably, the price surge came alongside an extreme spike in trading activity, a shift in altcoin market flows, and a key governance outcome within the Cosmos ecosystem that removed uncertainty around Osmosis’s future structure.

Forces behind the Osmosis crypto price surge

One of the biggest drivers behind the sudden Osmosis crypto price surge is the dramatic rise in trading activity on the Osmosis decentralised exchange.

On-chain data shows a surge in 24-hour trading volume of more than 7,000%, reaching roughly $173.892 million, according to Coingecko data, at press time.

This level of activity is unusually high compared to the token’s typical liquidity profile and signals a sudden inflow of speculative capital.

This spike suggests that traders were actively rotating funds into Osmosis liquidity pools, likely driven by momentum strategies and short-term positioning.

When volume expands this rapidly relative to available liquidity, even moderate buying pressure can produce outsized price movements, which helps explain the sharp upward acceleration.

Another important factor is the broader market environment.

The Altcoin Season Index has risen to around 51, reflecting a mild shift in capital from major assets like Bitcoin into higher-risk altcoins.

In such an environment, mid-cap tokens tied to active ecosystems tend to experience amplified moves, and Osmosis has clearly benefited from this rotation.

The rally was also reinforced by a governance vote within the Cosmos ecosystem.

On April 17, 2026, a proposal to integrate Osmosis more directly into the Cosmos Hub narrowly failed.

While some market participants initially viewed integration as a potential long-term structural upgrade, the failure of the proposal removed uncertainty around Osmosis’s independence.

Following the vote, the Osmosis team confirmed that the network would continue operating independently, maintaining its current structure and focusing on profitability and user security.

The Cosmos Hub proposal to integrate Osmosis narrowly did not pass governance.

While this is not the outcome we thought was best for Cosmos, we want to thank the community, validators, and everyone who engaged deeply with the discussion.

Osmosis continues to operate as an…

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— Osmosis 🧪 (@osmosis) April 17, 2026

This clarity appears to have reduced governance-related uncertainty and contributed to improved short-term sentiment.

At the same time, market conditions were already supportive.

The token was trading in a highly reactive range, and once momentum began building, price action accelerated quickly.

The combination of rising volume, altcoin inflows, and narrative confirmation created the conditions for a sharp upward breakout.

OSMO price outlook

From a technical perspective, the move in OSMO has the characteristics of a momentum-driven expansion phase.

The price nearly doubled in a single day, which is typically associated with speculative trading rather than gradual accumulation.

Eyes are not on the support near $0.065, which is an important level for the altcoin to maintain the bullish momentum.

If the token holds above $0.065, it could indicate consolidation after the initial spike.

A break above $1 and sustained trading above this level would suggest continuation of momentum, especially if trading volume remains elevated.

However, volume will play a decisive role in the next phase.

The same surge that pushed the Osmosis crypto upward could also reverse quickly if activity begins to fade.

A drop in trading volume below roughly $100 million would signal weakening participation and could increase the likelihood of a pullback.

If selling pressure increases, a breakdown below $0.055 would be an important bearish trigger.

Such a move would likely indicate that short-term traders are exiting positions after the sharp rally, potentially leading to a deeper retracement toward lower liquidity zones.

The cryptocurrency industry often appears mysterious to newcomers. Many assume blockchain protocols simply “print money” whenever prices rise or new tokens are launched. In reality, sustainable crypto projects operate much more like businesses than people realize. Behind every decentralized exchange, lending protocol, or blockchain network is a system designed to generate revenue, manage expenses, and incentivize growth.

Understanding how crypto projects make money is essential for evaluating whether a protocol has long-term potential or is simply surviving on hype.

The Difference Between Revenue and Token Price

One of the biggest misconceptions in crypto is the belief that a rising token price automatically means a project is successful.

In traditional business, a company’s value is often linked to its revenue and profitability. In crypto, however, token prices can rise purely because of speculation, trends, or market sentiment.

A protocol may have:

• A rapidly increasing token price, but very little real revenue
• Strong revenue generation while its token remains undervalued
• Massive user activity with weak treasury management
• Sustainable cash flow despite bearish market conditions

This distinction matters because long-term survival depends more on actual economic activity than temporary token speculation.

A healthy crypto project usually combines:

1. Real protocol usage
2. Sustainable revenue streams
3. Effective treasury management
4. Incentives aligned with long-term growth

Trading Fees: The Core Revenue Engine

For many crypto protocols, trading fees are the primary source of income.

This model is especially common among decentralized exchanges (DEXs) such as:

• Uniswap
• PancakeSwap
• Hyperliquid

Every time users swap tokens, open leveraged positions, or provide liquidity, the protocol collects a percentage-based fee.

For example:

• A DEX may charge 0.3% per trade
• Perpetual futures platforms collect trading and funding fees
• Lending protocols charge interest spreads between borrowers and lenders

When millions or even billions of dollars move through these systems daily, small fees can add up to substantial revenue.

This is similar to how traditional financial exchanges operate. The difference is that blockchain activity is transparent, allowing users to publicly track protocol revenue.

Treasury Management: The Protocol’s Financial Backbone

Most serious crypto projects maintain a treasury, which functions similarly to a corporate reserve fund.

Treasuries may contain:

• Native tokens
• Stablecoins
• Bitcoin
• Ethereum
• Yield-generating assets
• Venture investments

Effective treasury management is critical because crypto markets are highly volatile. A project holding only its own token may struggle during bear markets if the token loses significant value.

Well-managed treasuries help projects:

• Fund development
• Pay contributors
• Support ecosystem grants
• Maintain liquidity
• Survive prolonged downturns

Some protocols also generate income by deploying treasury assets into staking systems or decentralized finance strategies.

Projects with strong treasury discipline are generally viewed as more resilient during market cycles.

Staking: Incentives and Network Security

Staking is another major economic mechanism in crypto.

In Proof-of-Stake ecosystems, users lock tokens to help secure the network and validate transactions. In return, they receive rewards.

Popular staking ecosystems include:

Staking serves multiple purposes:

• Secures the blockchain
• Encourages long-term holding
• Reduces circulating supply
• Aligns users with network growth

However, staking rewards are often misunderstood.

Many beginners see high APY percentages and assume guaranteed profits. In reality:

• Rewards may come from token inflation
• Token prices can fall faster than rewards accumulate
• Unsustainable yields often collapse during weak market conditions

The most sustainable staking systems are backed by real network usage and fee generation rather than excessive token emissions.

Token Models: Utility vs Speculation

A token model, or tokenomics structure, determines how a project distributes value across its ecosystem.

Crypto projects use tokens for different reasons:

• Governance voting
• Transaction fees
• Staking access
• Liquidity incentives
• Revenue sharing
• Ecosystem participation

Strong token models attempt to balance:

• User incentives
• Network growth
• Supply control
• Long-term sustainability

Weak token models often rely heavily on inflation. In these cases, new tokens are constantly issued to attract users, but demand eventually weakens.

This creates a cycle where:

1. Rewards attract liquidity
2. Token supply expands rapidly
3. Selling pressure increases
4. Token prices decline
5. User participation falls

This pattern has caused many short-lived DeFi projects to disappear after initial hype faded.

Revenue-Sharing Models

Some crypto projects distribute protocol revenue directly to token holders or stakers.

This approach is becoming increasingly popular because it creates clearer economic alignment between users and the protocol itself.

Revenue-sharing can include:

• Buyback-and-burn mechanisms
• Staking rewards funded by fees
• Dividend-like distributions
• Fee rebates for active users

Projects pursuing this model aim to connect actual protocol usage with token demand.

However, regulations surrounding revenue-sharing tokens continue to evolve globally, making compliance an ongoing challenge for many teams.

Why Some Projects Fail Despite Huge Hype

Crypto history is filled with projects that reached multi-billion-dollar valuations without sustainable revenue.

Common failure patterns include:

• Excessive token inflation
• Unsustainable staking rewards
• Poor treasury management
• Weak product-market fit
• Dependency on constant user growth
• Speculative demand without utility

When market sentiment weakens, projects without real economic foundations often struggle to maintain activity.

This is why experienced investors increasingly analyze:

• Protocol fees
• Treasury size
• Active users
• Revenue consistency
• Token supply dynamics

rather than relying solely on price charts.

The Future of Crypto Business Models

The industry is gradually shifting from speculation-driven growth toward sustainable financial infrastructure.

Modern crypto projects are increasingly focused on:

• Real revenue generation
• Long-term treasury stability
• Product utility
• Institutional adoption
• Transparent on-chain economics

As the market matures, projects with strong fundamentals are more likely to survive beyond short-term hype cycles.

In many ways, crypto protocols are evolving into digitally native financial businesses — powered by blockchain technology but governed by the same economic realities that affect every industry.

Final Thoughts

Crypto projects do not generate value magically. Behind every successful protocol is an economic system designed to attract users, generate activity, and sustain operations over time.

Trading fees, staking systems, treasury management, and carefully designed token models all play a role in determining whether a project can survive market cycles and continue growing.

For beginners entering the space, understanding these mechanics is one of the most important steps toward separating sustainable innovation from temporary speculation.