{"id":891541,"date":"2026-02-10T23:12:04","date_gmt":"2026-02-11T05:12:04","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2026\/02\/10\/kyle-samani-criticizes-hyperliquid-in-explosive-post-departure-market-commentary\/"},"modified":"2026-02-10T23:12:04","modified_gmt":"2026-02-11T05:12:04","slug":"kyle-samani-criticizes-hyperliquid-in-explosive-post-departure-market-commentary","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2026\/02\/10\/kyle-samani-criticizes-hyperliquid-in-explosive-post-departure-market-commentary\/","title":{"rendered":"Kyle Samani Criticizes Hyperliquid in Explosive Post-Departure Market Commentary"},"content":{"rendered":"<div>\n<div>\n<div>\n<p>Author<\/p>\n<div>\n<p>CryptoNews Editorial Team<\/p>\n<div>\n<div>\n<div>\n<p>Author<\/p>\n<p><span>CryptoNews Editorial Team<\/span><span class><img decoding=\"async\" src=\"https:\/\/cryptonews.com\/wp-content\/themes\/cryptonews\/images\/verification.svg\" alt=\"Verified\"><\/span>\n                    <\/p>\n<\/p><\/div>\n<div>\n<p>Part of the Team Since<\/p>\n<p>Sep 2018<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<div>\n<p>About Author<\/p>\n<p>The CryptoNews editorial team is composed of seasoned writers specializing in cryptocurrency and blockchain technology. Their expertise ensures comprehensive, accurate, and insightful content for&#8230;<\/p>\n<\/p><\/div>\n<\/div><\/div>\n<\/p><\/div>\n<div>\n<p>Last updated:\u00a0<\/p>\n<p><time datetime=\"2026-02-10T13:24:01+00:00\">February 10, 2026<\/time>\n        <\/p>\n<\/p><\/div>\n<\/div>\n<p><img fetchpriority=\"high\" width=\"1792\" height=\"1024\" src=\"https:\/\/cimg.co\/wp-content\/uploads\/2026\/02\/10091421\/featured-image-4.jpg\" alt decoding=\"async\"  ><\/p>\n<p>Kyle Samani, the recently departed co-founder of Multicoin Capital, has launched a blistering attack on the high-flying Hyperliquid <a href=\"https:\/\/cryptonews.com\/cryptocurrency\/best-decentralized-exchanges\/\" target=\"_blank\" rel=\"noreferrer noopener sponsored nofollow\">decentralized exchange (DEX)<\/a>, labeling it a systemic risk despite his former firm\u2019s reported aggressive accumulation of its underlying <a href=\"https:\/\/cryptonews.com\/price-predictions\/hyperliquid-price-prediction\/\">HYPE token<\/a>.<\/p>\n<div>\n<p><strong>Key Takeaways:<\/strong><\/p>\n<ul>\n<li>Kyle Samani publicly slammed Hyperliquid\u2019s closed-source model days after leaving Multicoin Capital.<\/li>\n<li>On-chain analysts report Multicoin-linked wallets holding over $40 million in HYPE tokens.<\/li>\n<li>Hyperliquid recently surpassed Coinbase in volume following its HIP-4 prediction market launch.<\/li>\n<\/ul>\n<\/div>\n<h2>Why is Samani Targeting Hyperliquid Now?<\/h2>\n<p>Samani stepped down from Multicoin Capital on February 5, 2026, ending a decade-long tenure.<\/p>\n<p>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.<\/p>\n<figure>\n<div>\n<blockquote data-width=\"550\" data-dnt=\"true\">\n<div lang=\"en\" dir=\"ltr\">\n<p>Hyper liquid is in most respects everything wrong with crypto<\/p>\n<p>Founder literally fled his home country to build <br \/>Openly facilitates crime and terror<br \/>Closed source<br \/>Permissioned<\/p>\n<\/div>\n<p>\u2014 Kyle Samani (@KyleSamani) <a href=\"https:\/\/twitter.com\/KyleSamani\/status\/2020425094137532531?ref_src=twsrc%5Etfw\" target=\"_blank\">February 8, 2026<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n<p>Samani also implies criminal or untoward things about the exchange, facilitating \u201ccrime and terror\u201d, although he mistakenly calls the <a href=\"https:\/\/fortune.com\/2026\/01\/12\/hyperliquid-jeff-yan-defi-perpetuals-perps-exchange-defi\/\" target=\"_blank\">Bay Area-born Hyperliquid founder Jeff Wan<\/a> an immigrant.<\/p>\n<p>This clash of philosophies comes at a time when capital flows are ignoring ideology; <a href=\"https:\/\/cryptonews.com\/news\/investors-pour-258m-into-crypto-startups-despite-2t-market-wipeout\/\">investors pour $258 million into crypto startups<\/a> regardless of technical decentralization, chasing the massive returns that high-performance apps are currently delivering.<\/p>\n<p>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.<\/p>\n<h2>\u201cWalled Garden\u201d or Market Leader?<\/h2>\n<p>Samani didn\u2019t hold back, asserting that Hyperliquid \u201cis in most respects everything wrong with crypto.\u201d<\/p>\n<p>His critique specifically targets the project\u2019s closed-source architecture and permissioned validator set.<\/p>\n<p>He argues this \u201cwalled garden\u201d approach, combined with the founder\u2019s choice to set up shop in the non-extradition jurisdiction of Singapore, creates unacceptable seizure risks.<\/p>\n<p>Samani also alleged that the platform\u2019s opacity acts as a shield for potential illicit financial activity.<\/p>\n<p>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 <a href=\"https:\/\/cryptonews.com\/news\/two-high-schoolers-charged-in-arizona-home-invasion-targeting-66m-in-crypto\/\">targeting $66m in crypto<\/a>, reminding the market of the darker side of unparalleled anonymity.<\/p>\n<p>Despite Samani\u2019s reservations, the market continues voting with its wallet. Hyperliquid recently overtook Coinbase in trading volume, doubling the centralized exchange\u2019s figures in early 2026.<\/p>\n<figure>\n<div>\n<blockquote data-width=\"550\" data-dnt=\"true\">\n<div lang=\"en\" dir=\"ltr\">\n<p>BREAKING: Hyperliquid is quietly outgrowing Coinbase.<\/p>\n<p>Trading Volume (Notional):<\/p>\n<p>\u2022 Coinbase: $1.4T<br \/>\u2022 Hyperliquid: $2.6T<\/p>\n<p>That\u2019s nearly 2x Coinbase\u2019s volume\u2026 from an onchain exchange. And the market is noticing.<\/p>\n<p>YTD Price Performance:<\/p>\n<p>\u2022 Hyperliquid: +31.7%<br \/>\u2022 Coinbase:\u2026 <a href=\"https:\/\/t.co\/bqWcubvu7O\" target=\"_blank\">https:\/\/t.co\/bqWcubvu7O<\/a> <a href=\"https:\/\/t.co\/49IWNadjy4\" target=\"_blank\">pic.twitter.com\/49IWNadjy4<\/a><\/p>\n<\/div>\n<p>\u2014 Artemis (@artemis) <a href=\"https:\/\/twitter.com\/artemis\/status\/2020965276234154248?ref_src=twsrc%5Etfw\" target=\"_blank\">February 9, 2026<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n<p>With a market cap above $7 billion, the HYPE token remains one of the 20 largest cryptocurrencies and among the <a href=\"https:\/\/cryptonews.com\/cryptocurrency\/top-crypto-for-diversification\/\" target=\"_blank\" rel=\"noreferrer noopener sponsored nofollow\">top cryptos to diversify with<\/a>. This calls to mind how the <a href=\"https:\/\/cryptonews.com\/news\/post-quantum-qone-token-sells-out-in-24-hours-raises-950000\/\" target=\"_blank\" rel=\"noreferrer noopener\">Post-Quantum QONE token sold out in 24 hours<\/a>, proving that traders value cutting-edge tech narratives above the social media feuds.<\/p>\n<h2>The $40 Million Contradiction<\/h2>\n<p>The timing of these comments has also fueled speculation concerning internal disagreements at Multicoin.<\/p>\n<p>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.<\/p>\n<figure><\/figure>\n<p>Samani\u2019s response to the firm\u2019s purchasing behavior was blunt: \u201c<a href=\"https:\/\/x.com\/KyleSamani\/status\/2020525647659954627\" target=\"_blank\">I don\u2019t work at multicoin<\/a>.\u201d Since leaving, he has stated his intention to branch into other technologies, but announced he will remain chair of Forward Industries, a Solana treasury.<\/p>\n<p>Samani\u2019s clash with Hyperliquid underscores the deep divisions still rife in crypto as the industry awaits regulation by US lawmakers.<\/p>\n<p>\n                                    <a href=\"https:\/\/news.google.com\/publications\/CAAqKQgKIiNDQklTRkFnTWFoQUtEbU55ZVhCMGIyNWxkM011WTI5dEtBQVAB?ceid=US:en&#038;oc=3\" target=\"_blank\"><\/p>\n<p>                            <svg width=\"20\" height=\"16\" viewBox=\"0 0 20 16\" fill=\"none\">\n                            <path d=\"M19.6 5.36C19.6 5.48 19.6 5.66 19.54 5.78L17.2 12.8V5.6C17.2 4.94 16.66 4.4 16 4.4H12.82L12.52 3.8L11.86 2.36L15.34 3.32L18.58 4.16C19.18 4.28 19.6 4.82 19.6 5.36Z\" fill=\"#FF4131\" \/>\n                            <path d=\"M15.4 0.799997V3.26L11.92 2.3L11.74 1.88C11.44 1.28 10.72 0.979997 10.12 1.22L4.59998 3.38V0.799997C4.59998 0.499997 4.89998 0.199997 5.19998 0.199997H14.8C15.1 0.199997 15.4 0.499997 15.4 0.799997Z\" fill=\"#03A846\" \/>\n                            <path d=\"M12.82 4.4H4.00002C3.34002 4.4 2.80002 4.94 2.80002 5.6V11.42L0.520024 6.5C0.460024 6.26 0.400024 6.08 0.400024 5.9V5.84C0.400024 5.3 0.700024 4.82 1.24002 4.64L4.60002 3.32L10.06 1.22C10.72 0.979997 11.44 1.28 11.68 1.88L11.86 2.3L12.52 3.74L12.82 4.4Z\" fill=\"#FDBD04\" \/>\n                            <path d=\"M17.2 5.59999V14.6C17.2 15.26 16.66 15.8 16 15.8H4.00005C3.34005 15.8 2.80005 15.26 2.80005 14.6V5.59999C2.80005 4.93999 3.34005 4.39999 4.00005 4.39999H16C16.66 4.39999 17.2 4.93999 17.2 5.59999ZM9.40005 9.79999H7.00005V11H7.90005C7.60005 11.36 7.18005 11.6 6.70005 11.6C5.86005 11.6 5.20005 10.94 5.20005 10.1C5.20005 9.25999 5.86005 8.59999 6.70005 8.59999C7.12005 8.59999 7.48005 8.77999 7.78005 9.01999L8.62005 8.17999C8.14005 7.69999 7.48005 7.39999 6.70005 7.39999C5.20005 7.39999 4.00005 8.59999 4.00005 10.1C4.00005 11.6 5.20005 12.8 6.70005 12.8C7.90005 12.8 8.86005 12.08 9.22005 11C9.34005 10.7 9.40005 10.4 9.40005 10.1C9.40005 9.97999 9.40005 9.91999 9.40005 9.79999ZM14.8 7.39999H10.6V8.59999H14.8V7.39999ZM16 9.79999H10.6V11H16V9.79999ZM14.8 12.2H10.6V13.4H14.8V12.2Z\" fill=\"#0284FE\" \/>\n                            <\/svg><br \/>\n                                                                    Follow us on Google News                                    <\/a>\n                                <\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/cryptonews.com\/news\/kyle-samani-criticizes-hyperliquid-multicoin\/\" class=\"button purchase\" rel=\"nofollow noopener\" target=\"_blank\">Read More<\/a><br \/>\n Anthony Pecora<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Author CryptoNews Editorial Team Author CryptoNews Editorial Team Part of the Team Since Sep 2018 About Author The CryptoNews editorial team is composed of seasoned writers specializing in cryptocurrency and blockchain technology. Their expertise ensures comprehensive, accurate, and insightful content for&#8230; Last updated:\u00a0 February 10, 2026 Kyle Samani, the recently departed co-founder of Multicoin Capital<\/p>\n","protected":false},"author":1,"featured_media":891542,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1601,148076],"tags":[],"class_list":["post-891541","post","type-post","status-publish","format-standard","has-post-thumbnail","category-criticizes","category-samani"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/891541","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=891541"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/891541\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/891542"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=891541"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=891541"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=891541"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}