Hyperliquid Faces Criticism From Kyle Samani Amid Governance and Investment Disputes

• Kyle Samani, former co-founder of Multicoin Capital, publicly criticized Hyperliquid for its centralized governance and closed-source code, calling it 'everything wrong with crypto'.
• On-chain data indicates that Multicoin Capital had acquired $46 million worth of HYPE tokens before Samani's public criticism, raising questions about strategic disagreements within the firm.
• Hyperliquid's HYPE token has seen strong performance, with daily trading volumes exceeding $28.4 billion, and the platform has announced the HIP-4 proposal to introduce outcome trading, expanding beyond traditional derivatives.

Kyle Samani's recent comments came shortly after his resignation from Multicoin Capital on February 5, 2026. The timing of his exit and public criticism has led analysts to speculate about potential ideological or strategic conflicts within the firm. Samani emphasized his commitment to decentralization, which contrasts with Hyperliquid's approach, where governance remains centralized.

Despite Samani's criticisms, Hyperliquid's HYPE token has shown resilience in the market. The token has traded at $34.6, reflecting broader interest in the platform's growth and its recent Coinbase listing. The HIP-4 proposal is now live on testnet and aims to bring outcome-based trading to the platform. This development could align Hyperliquid with the fast-growing prediction markets trend, as platforms like Kalshi and Polymarket report record trading volumes.

What Are the Implications of Kyle Samani's Criticism?

Samani's remarks have sparked a broader debate within the crypto community about the balance between decentralization and practical performance in decentralized finance (DeFi) projects. Some supporters of Hyperliquid argue that the platform aligns more closely with core crypto principles than many venture-backed projects. However, Samani's public criticism has highlighted concerns about governance transparency and the risk of concentrated control.

The on-chain evidence of Multicoin's $46 million HYPE token purchase just before Samani's exit has led to speculation about internal disagreements over investment strategy. Analysts suggest that these tensions may have contributed to his departure, though neither Multicoin nor Hyperliquid has confirmed this.

How Is Hyperliquid Performing Financially and Technically?

Hyperliquid's financial performance has been robust, with daily revenues reaching $6.84 million in February. The platform generated $844 million in revenue in 2025, surpassing Ethereum's $524 million in network fees for the same period. This growth is partly attributed to the rise in real-world asset (RWA) trading, including U.S. equities and commodities.

Hyperliquid's HYPE token has experienced price volatility, with a recent rise from $17 to $38 but cooling below the 200-day SMA. Technical indicators suggest that a breakout above $35 could trigger further gains, while a drop below $31.15 may test the 100 EMA at $30.32. Despite these fluctuations, the token has shown relative price strength amid broader crypto volatility.

What Is the Significance of the HIP-4 Proposal for Hyperliquid's Future?

The HIP-4 proposal marks a strategic move for Hyperliquid to expand into outcome-based trading, a sector that includes prediction markets and bounded options-style instruments. This development is seen as a key differentiator for the platform, which has already captured significant liquidity and trading volume in traditional perpetual futures.

Prediction markets are experiencing strong growth, with platforms like Kalshi and Polymarket reporting record volumes. Hyperliquid's entry into this space could position it to benefit from the growing demand for diversified trading products. The HIP-4 feature is currently live on testnet, with plans to launch canonical markets using USDH, Hyperliquid's stablecoin.

The success of HIP-4 will depend on the execution of the proposal and the broader market's adoption of outcome-based trading. If executed successfully, it could drive further adoption within the Hyperliquid ecosystem and solidify its role in the evolving landscape of DeFi.