Hyperliquid is just Binance 2.0 without marketing

Kyle Samani, former co-founder of Multicoin Capital, does not mince his words when it comes to his opinion on Hyperliquid. According to him, the decentralised trading platform is nothing more than “Binance 2.0 without a marketing team”. Samani goes a step further and claims that American companies do not want to work with Hyperliquid at all.

Samani’s criticism focuses mainly on the technical choices Hyperliquid made during development. These decisions may work fine in a centralised environment, but according to him, they are completely incompatible with a permissionless decentralised setting. As a result, Samani says Hyperliquid lags several steps behind its competitors.

Technical limitations in a decentralised environment

Samani’s criticism touches on a fundamental problem many projects struggle with. When a company designs a system with centralisation in mind, certain approaches are much easier to implement. However, these compromises work against you when you later try to transition to a fully decentralised architecture.

For Hyperliquid, this means the platform is falling behind in the development of true decentralisation. According to Samani, the platform’s architecture is not ready for the step towards a fully permissionless system, where no one is a gatekeeper or central authority.

No partnerships with American companies possible

Another pain point Samani raises is the damaged reputation. The fact that “no real American companies” want to work with Hyperliquid anymore suggests the platform is facing serious problems in terms of regulation and compliance. This can deter partners.

Despite this criticism, Hyperliquid is trading at $66.33 today, down 1.0% in the past 24 hours. Previous technical issues, such as an error in the oracle data that caused the SpaceX perpetual to crash 45%, have already put pressure on the platform.