Kyle Samani, former co-founder and managing partner of Multicoin Capital, sparked controversy within the cryptocurrency industry this week by sharply criticizing the decentralized derivatives platform Hyperliquid, describing it as “everything wrong with crypto.” Samani’s remarks, which hit social media just days after his departure from Multicoin Capital, drew strong rebuttals from traders, supporters of Hyperliquid, and other market participants.
Samani’s Critique Targets Structure and Ethics
On Feb. 8, 2026, Samani — who also serves as chairman of Forward Industries — took to the X platform to condemn Hyperliquid, an on-chain perpetual futures exchange known for high performance and low fees. Samani’s post criticized the platform’s governance and technology, accusing it of relying on closed-source code, permissioned access controls, and claiming its founder “fled his home country to build” the project. He also alleged, without evidence, that the platform “facilitates crime and terror.”
Samani’s comments framed Hyperliquid as emblematic of broader structural and ethical issues within the crypto sector — an industry he suggested has strayed from core principles of decentralization and transparency.
Timing and Multicoin Investment Activity Raise Questions
The timing of Samani’s criticism drew attention: he had announced his departure from Multicoin Capital on Feb. 5, 2026, and his remarks came just three days later. Meanwhile, on-chain data reportedly showed wallets linked to Multicoin acquiring over $40 million worth of Hyperliquid’s native token, $HYPE, in late January — before Samani publicly criticized the protocol.
This juxtaposition fueled speculation in the crypto community about internal disagreements over strategic investment decisions at Multicoin, with some observers suggesting the critique may reflect ideological divergence within the firm.
Community and Industry Reactions
Samani’s comments were met with pushback from parts of the crypto community and prominent traders. Some supporters of Hyperliquid defended the platform, highlighting its rapid growth, high trading volumes, and product innovations. The disagreement quickly became a broader industry talking point, with users publicly challenging Samani’s characterizations and accusing him of “sour grapes” or hypocrisy.
Renowned trader Arthur Hayes, co-founder of BitMEX, rejected the ideological critique and instead turned it into a $100,000 bet: he challenged Samani to wager that Hyperliquid’s HYPE token would outperform any altcoin with a market capitalization above $1 billion over a defined period. If Samani accepts, the loser would donate the stake to charity. This bet reframed the debate around market performance rather than moral arguments.
Participants in the discussion on X and other forums used humor and memes in response to Samani’s critique — a sign that many in the community were less persuaded by his arguments than entertained by the spectacle, describing some of his remarks as “clownish behavior.”
Hyperliquid’s Market Position and Future
Despite the criticism, Hyperliquid’s HYPE token has shown resilience. It maintained strong price performance amid broader market pressure, supported by significant trading volume and institutional interest following notable integrations and listings on major exchanges.
Industry analysts noted that the clash highlights a fundamental ideological divide in the crypto world — between proponents of radical decentralization and those who prioritize pragmatic adoption, performance, and liquidity. The outcome of the Hayes-Samani wager, if accepted, could further shape perceptions of Hyperliquid’s legitimacy and future trajectory.
Looking Ahead
As the debate unfolds, observers will be watching whether Samani formally accepts Hayes’s bet, how Hyperliquid’s price performance evolves, and whether the broader crypto community continues to rally behind one camp or another. Samani’s post-Multicoin commentary underscores the dynamic and often contentious nature of discourse in digital asset markets.
