Leverage Whale James Wynn Opens New Bitcoin Long Position
Leverage whale James Wynn today opened a new long position in Bitcoin, but its value is less than $20,000. At the same time, he called on Binance founder CZ to support the launch of a dark pool DEX.
(Background: James Wynn no longer pretends? Self-proclaimed idiot gambler who lost $100 million posted Hyperliquid referral link)
(Context: Lost over $60 million in a week. Whale James Wynn: I am still richer than you, with a passive income over your annual earnings)
James Wynn’s New Bet
Renowned for his high-leverage contract trading, James Wynn, after losing $100 million in profits over the past month, posted on X earlier today that he opened a 40x long position in Bitcoin, but this time the position is valued at only $18,737.66, which he referred to as an “ant-sized position.” He wrote:
“Remaining a chip and a chair. I’m all-in ”
“Scraped $468.62 together. Slammed it on 40x. A chip and a chair. I’m all-in ”
— James Wynn (@JamesWynnReal) June 8, 2025
No Advertising Fees from Hyperliquid
In response to community doubts that his recent actions are merely advertising for Hyperliquid, he also posted earlier:
“I haven’t received a single cent from Hyperliquid. I reached out to them twice hoping to discuss a partnership, as I have brought them considerable attention. Although they expressed gratitude, they said they do not sign partnership deals with anyone. This makes sense, considering they are a decentralized platform and do not operate like traditional exchanges.”
“I earned $34,000 through their referral system. Given the number of registrations and trading volume I brought, this amount is ridiculously low. Their referral system is really poor; others are much better.”
On the other hand, perhaps feeling that Hyperliquid’s feedback was insufficient, he also stated that if Binance founder CZ could launch his own dark pool perpetual contract DEX, it would end Hyperliquid.
“CZ has the funds, connections, and team to create something entirely different. Just look at how he built up Binance.”
“I hope this can stimulate Hyperliquid to self-upgrade, as they will soon be overtaken by stronger competitors.”
CZ Calls for Dark Pool DEX Development
CZ stated earlier this month that the existing public order book model of DEX enhances transparency but also exposes the orders of large traders, potentially leading to slippage, front-running, and malicious liquidations. In a fully transparent market, even large funds could become targets of joint attacks. He remarked:
“Even if you have a billion dollars, others may unite against you. For example, MEV attacks.”
Drawing from the traditional finance model of “dark pools” to reduce market impact for large transactions, CZ’s core suggestion is to create a DEX that mirrors this style on-chain, especially for perpetual contracts. He proposed that such DEXs should not display order books and could even hide deposit information of smart contracts using Zero-Knowledge Proofs (ZKPs) or similar cryptographic technologies until a period after the transaction is completed.
“Now might be a good time for someone to launch an on-chain dark pool style decentralized exchange (DEX) + perpetual contract platform. The specific approach could be not to display the order book and even further hide deposit records in the smart contract, or at least delay their display. This design should be feasible through zero-knowledge proofs (ZK) or similar cryptographic technologies.”
Benefits of Dark Pool DEX
Zero-Knowledge Proofs (ZKPs) are seen as a key technological pathway to achieving an on-chain “dark pool” DEX. The core principle of ZKPs is to prove the truth of information without revealing the information itself, which means validating the legitimacy of transactions without exposing order details, transaction amounts, directions, or even trader identities.
Potential advantages of a “dark pool” perpetual contract DEX include:
- Enhanced trading privacy: Especially beneficial for institutions and large traders’ strategy protection, preventing their trading intent from being prematurely exposed by market participants.
- Reduced market impact: Hiding orders can effectively prevent trading activity from causing drastic impacts on market prices, lowering slippage.
- Lower trading risks: Since orders are not public, the risks of front-running and MEV (Miner Extractable Value) attacks can be significantly reduced.
- Increased capital efficiency: Expected to integrate advanced trading features like unified cross-margining and portfolio margining.
- Potential cost-effectiveness: Combining Layer 2 scaling solutions or off-chain order matching mechanisms may achieve low gas fees and high transaction throughput.
Challenges and Market Prospects
Despite the promising outlook, achieving a “dark pool” DEX still faces multiple challenges:
- Technical complexity: Efficiently implementing and optimizing ZKPs on the blockchain requires a high degree of cryptographic expertise, which is extremely rare in reality.
- Scalability issues: Large-scale application of ZKPs may incur significant computational and storage costs, putting pressure on blockchain performance, or may require reliance on Layer 2 scaling solutions.
- Regulatory compliance: Privacy-enhancing features may raise regulators’ concerns about money laundering and illegal activities, making it crucial to balance privacy protection with compliance (e.g., IronFish has previously considered regulatory requirements in its design).
- Initial liquidity: Emerging DEX platforms often face challenges of insufficient liquidity in their early stages, requiring effective incentive mechanisms to attract market makers and traders.
Despite these challenges, CZ’s call to action is still surprising, and he has publicly expressed a willingness to communicate with founders of relevant projects:
“If you are building a relevant project, feel free to contact me at https://reachme.io/@cz_binance. There is no guarantee that I will invest, nor that I will reply to you.”
Related Reports
- Is James Wynn’s performance as a “crypto gambler” just a show for Hyperliquid?
- Whale James Wynn “loses everything”: giving up on contracts, I want to leave this degenerate place.
- Whale James Wynn opens short position shouting “Bitcoin will hit $120,000”: should invest 99% BTC, 1% meme coins.