It took some time to understand

Core:
In the past, ordinary pump coins relied on everyone's buying and selling to drive the price, and
this indicates that the tokens on this platform are actually driven by two forces simultaneously:
The first is purely driven by buying and selling to push the price, and the second is the performance of leveraged futures opened on hype. So, this means that the tokens on this platform can rise and fall without anyone buying or selling;
How is this achieved?
The key lies in what is called a Leveraged Token on the official website, translated as a non-liquidation leveraged token, hereafter referred to as LT. Each coin on this platform can have an LT as backing, which is a leverage position on hype that never gets liquidated;
For example, when you create a new coin, you can choose any one of the base tokens like BTC, ETH, HYPE, SOL, etc., and then select 2x, 3x, or 5x long or short leverage on it;
Next, the platform will automatically open a corresponding leveraged position using USDC, package it into an LT, and then bind the LT to the meme coin you created;
This way, the platform has a key mechanism — never liquidation:
Ordinary leverage will be liquidated and wiped out once it reaches a certain loss, but
How is its price calculated?
It has a dual engine for pricing. First, like pump tokens, the coin on this platform rises when bought and falls when sold — that’s the first layer. Second, with the LT mechanism, if the underlying 2x perpetual coin rises by 1%, then your LT rises by 2%, depending on your leverage;
For example:
Suppose you create a coin called $pepe , and the LT is a 5x long $btc . If the initial market cap is $4,000, and BTC spot price increases by 2%, then your $pepe will automatically increase by 10% because of the 5x leverage;
At the same time, if someone aggressively buys your $pepe , this force will push the price of $pepe even higher. Conversely, if BTC drops by 2%, the LT mechanism will automatically reduce the position and leverage, causing your coin to drop by 10%, but it won’t go directly to zero;
There are risks as well. The risk is that this mechanism can be very uncomfortable during volatile market conditions because the LT mechanism will repeatedly add or reduce leverage. Also, during a one-sided crash, it can accelerate your position toward zero infinitely, even if it’s not a true liquidation;
How to evaluate this? Actually, it’s neither a new mechanism nor an innovation; this kind of play was used during the battles between exchanges and public chains before. Now, with countless platforms, once you understand the mechanism and gameplay, you can also try to play with leading assets;