- IOTA founder Dominic Schiener says crypto innovators “need to work together to bring more users on-chain.”
- Scheiner was responding to recent reports questioning HyperLiquid’s transparency and integrity, alleging a lack of collateral.
IOTA founder Dominic Schiener has warned that the cryptocurrency ecosystem must learn to collaborate and prioritize shared progress rather than competing for dominance.
In response to the ongoing scandal in which leading decentralized trading protocol HyperLiquid has been accused of lacking financial health, Scheiner pointed out that the real enemy is legacy systems.
The IOTA founder posted on
Shouldn’t we be working together to bring more users on-chain instead of fighting each other? Shouldn’t we be working together against centralized exchanges?
This hostility will not allow us to go any further in achieving our goals and making cryptocurrencies better.
— Dominic Schiener (@DomSchiener) December 23, 2025
His sentiments were echoed by many, including one crypto advisor who commented, “If half the energy spent on toxic competition between DEXs could be spent on acquiring new CEX users, the world would move faster toward a decentralized future.”
IOTA founder intervenes as DEX war intensifies
Scheiner was responding to Vladimir Novakovsky, founder of Leiter, the ZK Rollup perpetual futures trading platform built on Ethereum, and one of HyperLiquid’s emerging competitors. Mr. Nowakowski poked holes in HyperLiquid’s detailed explanation of X regarding its financial health.
HyperLiquid has dismissed widely shared claims of bankruptcy, saying every dollar is accounted for.
“Hyperliquid is more transparent and decentralized than all other major criminal trading venues. The entire state is maintained independently by a set of permissionless validators and verified through BFT proof-of-stake consensus by each node,” it added.
One of the main claims was that the Hyperliquid network was undersecured by $326 million. However, the network says the accuser did not include HyperEVM USDC in the calculations.
Other claims included claims that some users enjoy special privileges such as fee waivers, that some administrators can move users’ funds without signatures, and that the chain could be frozen. HyperLiquid dismissed all these allegations as unfounded.
But not everyone was convinced, and Nowakowski attacked HyperLiquid against X, saying:
In the FUD cycle, we seem to have moved from “first they ignore you” to “then they fight you”. I don’t know if they know that the ZK proof works or if they read the whitepaper, but let’s see what new attacks they come up with once the circuit goes live this week.
Hyperliquid remains one of the world’s largest decentralized trading protocols, and the recent allegations have not seriously affected its market position. As reported by CNF, a recent report by Cantor Fitzgerald predicts the project will continue to grow into a $200 billion ecosystem generating more than $5 billion in fees annually.
IOTA trading hours $0.08263shedding 5% This month’s loss in the past day is 29%.
HYPE has also been on a downward trend in the past month and has fallen twenty four% trade with $24.3 At press time.
