La controversial Hyperliquid project, launched in November 2024, faces scrutiny over validator seat sales and closed-source code. The Hyper Foundation stands by its decisions and addresses allegations. Dive deeper into the details in this article.
Written by Ariela - Last updated on 01/10/2025 at 14:08 by Ariela
Since its launch, Hyperliquid has not only captured attention with its innovative model but also faced criticism. Recently, allegations emerged claiming that some entities may have purchased validator slots on the blockchain. These accusations aimed to challenge:
In an official statement, the Hyper Foundation categorically denied these claims:
“There is no way to buy a seat at the table, and claiming otherwise undermines the validators’ efforts.”
The Foundation clarified that the selection of validators is based on a strictly merit-based process. This considers technical criteria and system understanding.
Good to know :
Currently, the network has 16 validators, a number set to increase as the crypto ecosystem grows!
This clarification aims to reassure investors and community members who have expressed concerns. The Foundation emphasized that gradually adding validators is essential to maintain a balance between performance and security on its Layer 1 blockchain.
Another point of contention for the Hyperliquid crypto project: the decision to keep its source code closed. In the blockchain world, open-source is considered a symbol of transparency and trust. However, the Hyper Foundation defended this decision, citing practical and strategic reasons.
“We are moving at a much faster pace than most projects, with a much broader scope.”
According to them, the goal is to stabilize and secure the code before making it public. This has been the case for other projects like Solana, which also utilizes a single-client architecture. This approach would enable Hyperliquid to:
Nevertheless, the Foundation does not overlook the long-term importance of open source. This intermediate position aims to protect the project’s innovation and gradually align with the crypto community’s expectations.
Despite criticisms, Hyperliquid showcases impressive results, reinforcing its position in the crypto space. Since its launch in November 2024, the project conducted a massive airdrop of 310 million HYPE tokens, representing 31% of the total supply. This event captured investors’ attention and bolstered early user engagement.
The launch of the staking system locked $8.4 billion in cryptocurrencies, enhancing Layer 1 chain security and encouraging developers to engage in the ecosystem!
With a thriving market and robust infrastructure, Hyperliquid positions itself as a key player in the crypto sector. The Foundation remains optimistic but must navigate a complex environment where transparency is crucial for maintaining the crypto community’s trust.
⚠️ This article is published for informational purposes and should not be considered as investment advice. Crypto-currency trading involves risk and it is important not to invest more than you can afford to lose.
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Ariela is one of the main editors of the news shared daily on InvestX. With 8 years of experience in writing, she writes articles on the topics that mark the crypto market each day.
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