His comments touch on the sensitive topic of cryptocurrencies. Venture capital firms often accumulate large token positions in the public markets.
According to Jeff, the real concern isn’t just who owns the tokens. It’s about whether the project maintains its original neutrality and integrity and stays true to the ideals envisioned by Satoshi.
Venture capital and token concentration
Venture capital has played a major role in the growth of the crypto ecosystem, funding exchanges, protocols, and infrastructure. However, in many cases, a large amount of tokens will be allocated to investors before going public. Jeff argues that this could undermine the protocol’s principle of neutrality, which states that all participants in the network should start on equal footing. When a small number of companies control a large portion of the token supply, the playing field feels uneven, which can impact governance and long-term trust.
How big will Hyperliquid get?
“Finance as a whole” – $HYPE CEO @ChameleonJeff
superfluidity pic.twitter.com/UUjZDZQZBs
— TBPN (@tbpn) October 22, 2025
An illustration of this concern is Solana’s early funding round. Large venture investors received millions of tokens ahead of the public sale, leading to discussions about centralization and influence over the network. While such funding accelerates development, it also raises questions about whether the origins of the project remain “uncontaminated.” This is the term Jeff uses to describe a protocol that maintains fairness and transparency from the start.
According to Messari data, for many early-stage tokens, more than 50% of the supply is often accounted for by founders and investors, highlighting how concentration affects awareness and adoption.
Jeff emphasizes that even in competitive markets, teams should strive to respect the spirit of neutral protocols. This means designing token distribution, governance structures, and release schedules that reflect fairness and community participation. The goal is to build projects where no single actor, be it a VC or founder, can dominate decision-making or market influence. As cryptocurrencies mature, respecting these principles may become a key differentiator between long-term projects and those that struggle with credibility and trust.
Learn more about Hyperliquid
HyperLiquid announced that it has listed MEGA-USD Perpetual Futures (Hyperp) in response to community demand. This allows traders to take long or short positions in unreleased MegaETH tokens with up to 3x leverage.
At the request of the community, Hyperliquid has listed the MEGA-USD hyperp. You can now go long or short unreleased MegaETH tokens with up to 3x leverage. pic.twitter.com/PUWToNdmd0
— Hyperliquid (@HyperliquidX) October 22, 2025
The move allows users to speculate on the potential future value of MegaETH before its official debut, demonstrating Hyperliquid’s agility in responding to traders’ interest and expanding its suite of innovative crypto derivatives.
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HyperLiquid Founder Warns Venture Capitalists Will Change Bitcoin Principles This article was first published on Altcoin Buzz.