Key Takeaways
- Kyle Samani, co-founder of Multicoin Capital, criticized Hyperliquid as “everything wrong with crypto,” citing its closed-source code and permissioned design.
- Members of the crypto community strongly disputed his claims. They pointed to Hyperliquid’s rejection of venture capital, large-scale airdrop, and revenue-based buybacks.
- Arthur Hayes publicly challenged Samani to a $100,000 bet on Hyperliquid’s token performance, underscoring confidence in the platform.
Multicoin Capital co-founder Kyle Samani has publicly criticized Hyperliquid, calling it “everything wrong with crypto.”
His remarks, posted on X, accused the platform of operating in a closed-source, permissioned manner and of being contrary to the core principles of decentralization.
Samani’s comments quickly ignited backlash across the crypto community.
Critics then questioned both the substance of his claims and the timing of his remarks.
Samani’s Criticism Follows Departure From Multicoin
In his post, Samani argued that Hyperliquid embodies structural flaws in the crypto industry, citing governance concerns, a permissioned validator set, and the platform’s closed-source architecture.
“Hyperliquid is in most respects everything wrong with crypto,” he wrote.
He also alleged that Hyperliquid enables illicit activity, including crime and terrorism, without providing specific evidence.
Samani further criticized the background of Hyperliquid founder Jeff Yan.
He frame his relocation from the United States to a more crypto-friendly jurisdiction as regulatory evasion rather than innovation.
The remarks drew particular attention, given reports that Multicoin Capital had acquired more than $40 million worth of Hyperliquid’s native token, HYPE, in late January, based on on-chain data analysis.
This fueled speculation that internal disagreements over Hyperliquid and broader investment strategy may have contributed to Samani’s departure.
Historically, Samani has been a vocal supporter of Solana (SOL) and has emphasized transparency, decentralization, and open-source development as guiding investment principles.
His criticism of Hyperliquid focused heavily on what he described as centralized design choices that conflict with crypto’s permissionless ethos.
Hyperliquid’s Growth and Market Position
Since launch, Hyperliquid has seen rapid adoption.
The platform has generated more than $960 million in revenue and conducted what is widely regarded as the largest token airdrop in crypto history, valued at approximately $9 billion.
Hyperliquid vertically integrates spot and derivatives trading via its HyperEVM blockchain.
It positions itself as a high-performance alternative to established Layer 1 ecosystems like Solana.
Supporters argue that this integrated approach enables efficiency and scale that traditional decentralized platforms struggle to achieve.
Crypto Community Pushes Back
Samani’s comments prompted swift responses from prominent figures across the crypto ecosystem.
Many accused him of hypocrisy or suggested his criticism was motivated by personal or financial interests, including Multicoin’s exposure to HYPE or an alleged rejection from Hyperliquid.
Anthony Sassano, an Ethereum educator and investor, was among the most vocal critics.
In a post on X, Sassano labeled Samani a “massive grifter,” arguing that the criticism stemmed from not receiving a token allocation and from perceived threats to Solana-linked investments.
“You’re only talking about permissionless/OSS/decentralization because you didn’t get an allocation to Hyperliquid and it threatens your Solana and other L1 bags,” Sassano wrote.
Sassano also referenced Samani’s past associations with FTX and Sam Bankman-Fried.
Crypto trader Cobie similarly dismissed Samani’s remarks, describing them as “clownish behavior” shortly after his exit from Multicoin.
Arthur Hayes Issues $100,000 Challenge
Arthur Hayes, co-founder of BitMEX and chief investment officer at Maelstrom Fund, directly challenged Samani to a $100,000 wager tied to Hyperliquid’s token performance.
“Since HYPE is bad…let’s make a bet… HYPE will outperform any shitcoin over $1 billion market cap on CoinGecko in USD terms. You choose your champion. Loser donates $100,000 to a charity of the winner’s choice,” Hayes wrote.
Hayes proposed that between Feb. 10 and July 31, 2026, HYPE would outperform any cryptocurrency with a market capitalization above $1 billion. The loser, he suggested, would donate $100,000 to a charity chosen by the winner.
As of the latest available information, Samani has not responded publicly to the challenge.
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Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
