ChainCatcher report: According to market sources, Jeffrey Yan, founder of Hyperliquid, received an investment offer of approximately $100 million at a valuation of around $1 billion less than a year after the project’s launch. However, after careful consideration, he ultimately declined the investment terms. The report indicates that, prior to and following the investment proposal, the investor’s team had been sustaining operations by continuously funding the project out of their own pockets, using the founder’s personal funds to cover operational costs. During discussions with the investor, Jeff consulted with multiple entrepreneurs and VCs to understand the nature and implications of fundraising, but remained unconvinced that external capital could enhance the project’s intrinsic value. On Monday, he clearly informed his team of his decision to reject the funding offer. Internal sources described how team members responsible for financial management were stunned by the decision, as significant preparatory work for the fundraising had already been completed. Jeff’s core reasoning was that Hyperliquid is not a traditional company but an on-chain protocol requiring neutrality. He believed that introducing external equity capital could compromise the protocol’s permissionless and neutral positioning, conflicting with its long-term design goals. He has previously stated that if Bitcoin had accepted VC funding in its early stages, its narrative of neutrality might have been weakened. Applying the same logic, he chose to maintain Hyperliquid’s structure without external investors and continues to personally fund certain operational expenses over the long term. On January 28, 2024, he summarized the project’s principles on social media: · No investors · No paid market makers · No fees charged to the development team (or the development team does not take fees) · No insiders (or privileged internal participants). This statement has been regarded as a defining hallmark of Hyperliquid’s extreme decentralization and decapitalization approach.
Hyperliquid Founder Rejects $10B Valuation Funding Offer, Commits to 'Zero External Investment' Path
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Summary
Hyperliquid founder Jeffrey Yan rejected a $100 million funding offer tied to a $10 billion valuation, as disclosed in a recent project funding update. The team continues to self-fund operations, with the founders covering monthly expenses. Yan stated that external capital would not add value and could compromise the project’s neutrality. In a project announcement on January 28, 2024, he reaffirmed Hyperliquid’s principles: no investors, no paid market makers, no fees for the team, and no insiders.
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