Kyle Samani, the recently departed co-founder of Multicoin Capital, has launched a blistering attack on the high-flying Hyperliquid decentralized exchange (DEX), labeling it a systemic risk despite his former firm’s reported aggressive accumulation of its underlying HYPE token.
Key Takeaways:
- Kyle Samani publicly slammed Hyperliquid’s closed-source model days after leaving Multicoin Capital.
- On-chain analysts report Multicoin-linked wallets holding over $40 million in HYPE tokens.
- Hyperliquid recently surpassed Coinbase in volume following its HIP-4 prediction market launch.
Why is Samani Targeting Hyperliquid Now?
Samani stepped down from Multicoin Capital on February 5, 2026, ending a decade-long tenure.
Just three days later, on February 8, he broke his silence to target Hyperliquid, the biggest DEX in the world. His acerbic criticism highlights a deep ideological rift in the industry, with Kyle championing permissionless open-source protocols, which he claims Hyperliquid is not.
Samani also implies criminal or untoward things about the exchange, facilitating “crime and terror”, although he mistakenly calls the Bay Area-born Hyperliquid founder Jeff Wan an immigrant.
This clash of philosophies comes at a time when capital flows are ignoring ideology; investors pour $258 million into crypto startups regardless of technical decentralization, chasing the massive returns that high-performance apps are currently delivering.
With a dizzying plethora of features that give it some of the utility of a CEX, Hyperliquid has surged in recent months by prioritizing vertical integration and performance over open-source transparency.
“Walled Garden” or Market Leader?
Samani didn’t hold back, asserting that Hyperliquid “is in most respects everything wrong with crypto.”
His critique specifically targets the project’s closed-source architecture and permissioned validator set.
He argues this “walled garden” approach, combined with the founder’s choice to set up shop in the non-extradition jurisdiction of Singapore, creates unacceptable seizure risks.
Samani also alleged that the platform’s opacity acts as a shield for potential illicit financial activity.
This rhetoric taps into growing fears regarding unchecked crypto platforms, a narrative underscored recently when two high schoolers were charged in an Arizona home invasion targeting $66m in crypto, reminding the market of the darker side of unparalleled anonymity.
Despite Samani’s reservations, the market continues voting with its wallet. Hyperliquid recently overtook Coinbase in trading volume, doubling the centralized exchange’s figures in early 2026.
With a market cap above $7 billion, the HYPE token remains one of the 20 largest cryptocurrencies and among the top cryptos to diversify with. This calls to mind how the Post-Quantum QONE token sold out in 24 hours, proving that traders value cutting-edge tech narratives above the social media feuds.
The $40 Million Contradiction
The timing of these comments has also fueled speculation concerning internal disagreements at Multicoin.
A wallet widely believed to be linked to Multicoin was recently spotted accumulating over $40 million in HYPE tokens. This creates a stark contradiction: the firm Samani founded is betting heavily on the very asset he claims could ruin the industry.
Samani’s response to the firm’s purchasing behavior was blunt: “I don’t work at multicoin.” Since leaving, he has stated his intention to branch into other technologies, but announced he will remain chair of Forward Industries, a Solana treasury.
Samani’s clash with Hyperliquid underscores the deep divisions still rife in crypto as the industry awaits regulation by US lawmakers.
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