On February 8, Kyle Samani, former co-founder of Multicoin and chairman of Forward Industries (FORD), posted a notable critique on X, shedding light on serious issues with Hyperliquid.
Founder Concerns
Samani pointed out that the founders of Hyperliquid left their home country to build the project, raising red flags. He emphasized that this move not only questions their intentions but also introduces potential risks.
Facilitating Illicit Activities
More alarmingly, Samani argued that the platform openly supports criminal and terrorist activities. This behavior, he noted, goes against the compliance principles that the crypto industry should uphold.
Closed-Source and Permissioned Risks
Hyperliquid's closed-source code also drew scrutiny. Closed-source systems lack transparency, making it impossible for users to verify their security. Furthermore, the platform’s permissioned model amplifies concerns about centralized control.
These issues highlight the challenges facing the crypto industry in terms of regulation and technical transparency. Samani’s critique serves as a reminder to investors and regulators alike to approach emerging projects with caution.