His comments touch on a sensitive topic in crypto. Venture capital firms often accumulate large token positions on public markets.
According to Jeff, the real concern is not just who owns the tokens. It’s whether a project maintains its original neutrality and integrity, staying true to the ideals Satoshi envisioned.
Venture Capital and Token Concentration
Venture capital has played a major role in growing the crypto ecosystem, providing funding for exchanges, protocols, and infrastructure. Yet, it often results in large token allocations for investors before public release. Jeff argues this can shake the principle of protocol neutrality, where every participant in a network should start on equal footing. When a handful of firms control significant portions of a token supply, the playing field can feel uneven, affecting governance and long-term trust.
How big can Hyperliquid get?
“Finance as a whole” – $HYPE CEO @chameleon_jeff
Hyperliquid pic.twitter.com/UUjZDZQZBs
— TBPN (@tbpn) October 22, 2025
A real-world example of this concern is Solana’s early fundraising rounds. Large venture investors received millions of tokens ahead of public sale, leading to debates about centralization and influence over the network. While such funding accelerates development, it also raises questions about whether the project’s origins remain “untainted,” a term Jeff uses to describe protocols that maintain fairness and transparency from inception.
Data from Messari shows that for many early-stage tokens, over 50% of supply is often held by founders and investors, highlighting how concentration can influence perception and adoption.
Jeff emphasizes that even in competitive markets, teams should strive to honor the ethos of neutral protocols. This means designing token distributions, governance structures, and release schedules that reflect fairness and community participation. The goal is to create projects where no single actor, whether a VC or founder, can dominate decision-making or market influence. As crypto matures, respecting these principles can be a key differentiator between long-lasting projects and those that struggle with credibility and trust.
More About Hyperliquid
Hyperliquid announced that, following community demand, it has listed MEGA-USD perpetual futures (hyperps). This will allow traders to take long or short positions on the unlaunched MegaETH token with up to 3x leverage.
By community request, Hyperliquid has listed MEGA-USD hyperps. You can now long or short the unlaunched MegaETH token with up to 3x leverage. pic.twitter.com/PUWToNdmd0
— Hyperliquid (@HyperliquidX) October 22, 2025
This move lets users speculate on the potential future value of MegaETH before its official debut, showcasing Hyperliquid’s agility in responding to trader interest and expanding its suite of innovative crypto derivatives.
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