How Crypto Perpetuals Can Evolve Beyond a High-Leverage Casino: Insights from Flipster
Flipster's Head of Product suggests crypto perpetuals must evolve beyond high leverage speculation through better risk management and institutional alignment.Summary
Following a major liquidation event, Youngsun Shin, Head of Product at Flipster, analyzed the state of crypto perpetual futures, comparing the current market to a "high-performance car without enough brakes" due to over-leverage outpacing risk management. While acknowledging infrastructure improvements since 2021, Shin notes that easy access and high leverage have encouraged speculative, casino-like trading. He anticipates a shift away from short-term momentum toward long-term value creation, driven by institutional entry and demand for products like Bitcoin ETFs. For perpetuals to mature into reliable financial infrastructure, exchanges must integrate TradFi rigor—like strong custody, proof-of-reserves, and real-time risk engines—with crypto's openness. Shin also highlighted the "impossible trinity" challenge for DeFi derivatives: balancing decentralization, determinism, and liquidity. Ultimately, the evolution depends on making perpetuals risk-aware and transparent, ensuring leverage empowers insight rather than chaos.
(Source：BeInCrypto)