The Core Concern: Protocol Neutrality and Integrity
The concentration of tokens by venture capital firms on public markets raises significant concerns. According to Jeff, the primary worry is not merely who possesses the tokens, but whether a project can uphold its initial neutrality and integrity, remaining true to the foundational ideals envisioned by Satoshi Nakamoto.
Venture Capital and Token Concentration
Venture capital has been instrumental in the growth of the crypto ecosystem, providing essential funding for exchanges, protocols, and infrastructure. However, this involvement often leads to substantial token allocations for investors before public release. Jeff argues that this practice can undermine the principle of protocol neutrality, where every participant in a network is intended to start on equal footing. When a small number of firms control significant portions of a token supply, the playing field can become uneven, impacting 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 illustration of this concern can be seen in Solana’s early fundraising rounds. Large venture investors acquired millions of tokens before the public sale, sparking debates about centralization and influence over the network. While such funding accelerates development, it also prompts questions about whether the project’s origins remain “untainted,” a term Jeff uses to describe protocols that preserve fairness and transparency from their inception.
Data from Messari indicates that for many early-stage tokens, founders and investors often hold over 50% of the supply, highlighting how concentration can shape perception and adoption.
Jeff stresses that even in competitive markets, development teams should endeavor to uphold the ethos of neutral protocols. This involves designing token distributions, governance structures, and release schedules that embody fairness and encourage community participation. The ultimate objective is to foster projects where no single entity, whether a venture capital firm or a founder, can dominate decision-making or market influence. As the cryptocurrency space matures, adherence to these principles may serve as a crucial differentiator between enduring projects and those that face credibility and trust challenges.
More About Hyperliquid
Hyperliquid has announced the listing of MEGA-USD perpetual futures (hyperps), a development driven by community demand. This new offering allows traders to establish long or short positions on the yet-to-be-launched MegaETH token with leverage of up to 3x.
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 strategic move enables users to speculate on the potential future value of MegaETH prior to its official debut. It demonstrates Hyperliquid’s responsiveness to trader interest and its ongoing efforts to expand its array of innovative crypto derivatives.