Former Twitter CEO Jack Dorsey sparked a debate about Web3 after Tesla CEO Elon Musk criticized it. Dorsey warned of the risks of centralization and stressed that web3 is owned by venture capitalists (VCs) who hide under the premise of decentralization. “I am concerned that ‘the industry’ will be distracted on false pretenses when we can all work on things that have a chance to solve the real problems,” Dorsey wrote.
Jack Dorsey Says Web3 Is VC Owned, Elon Musk Says “It’s Somewhere Between A and Z”
Jack Dorsey and Tesla CEO Elon Musk raised concerns about web3 this week. Dorsey warned Monday: “You don’t own ‘web3’. The VCs and their LPs do. It will never escape their incentives. It is ultimately a centralized entity with a different label. Know what you are getting yourself into. “
His comment followed Musk’s tweet the day before specification that web3 “seems to be more of a marketing buzzword than reality at the moment”. The Tesla boss continued to tweet and asked: “Has anyone seen web3? I can’t find it. ”Dorsey answered: “It’s somewhere between a and z.”
While Dorsey unspecified which company he was referring to, many people on Twitter suspected that he was talking about the venture capital company Andreessen Horowitz (aka A16z), which was heavily promoted by Web3. “As the largest investor in this area, we know web3 – but we also understand the public service,” it says on the A16z website.
Some people shared Dorsey’s skepticism about venture capital firms. Cory Klippsten, founder of Swan Bitcoin, commented: “Jack knows exactly what massive fraud is perpetrated by A16z.” Another Twitter user described: “This tweet refers to the seedy crypto projects carried out by the VC company A16z (Andreessen Horowitz) from Silicon Valley. They create coins like Solana and then use their endless capital to market them, explode in market caps and then toss the coins at unsuspecting people. “
Web3 and Twitter
Balaji Srinivasan, a General Partner at A16z who was CTO of Coinbase crypto exchange, disagreed with Dorsey, citing Twitter as an example. He wrote: “Twitter began as a protocol, the free speech wing of the Free Speech Party. Then corporate and political incentives led to deplatforming and censorship. Web3 offers the option, no guarantee, something better. “
Dorsey replied, “All wrong. Twitter started out as a company. It had incentives for businesses from day one. It tries to make up for this through Bluesky, and it will. “He stated:
‘Web3’ has the same business incentives but hides it under ‘Decentralization’. It’s literally a different structure to the cap table.
The former CEO of Twitter who is still CEO of Block Inc., formerly Square Inc., too clarified Tuesday that he had nothing to do with web3 and was never interested in it, although some news articles suggest otherwise. He tweeted: “I have nothing to do with ‘web3’. WSJ and others need names and photos to generate clicks. “
There is a heated debate about Web3
Many people joined the web3 discussion on Twitter in response to Dorsey’s tweets. Some agree with Dorsey, including Alex Thorn, director of corporate research at Galaxy Digital, who tweeted:
Jack is right that many web3 projects have ownership problems.
Thorn continued, “This is very visible with newer L1 chains, whose shipments are much more centralized than those from the ICO era (let alone Bitcoin). It’s hard to see how the supplies (and management) of these coins decentralized over time. “
Alexander Leishman, CEO of River Financial, wrote, “Jack gets it. Web3 will continue to make people a lot of money, but make no mistake. “
However, some people disagree with Dorsey to some extent. The founders of the Gemini crypto exchange, the Winklevoss twins, joined the conversation. Tyler Winklevoss pointed out that Dorsey sold his very first tweet as a non-fungible token (NFT) for over $ 2.9 million. “Brought to you by web3,” he wrote. His brother Cameron Winklevoss noticed:
If web2 could transfer ownership of your data and privacy to you, web2 would have transferred ownership of your data and privacy to you. Web3 at least has a chance.
Chris Dixon, a partner at A16z, argued, “On web3, all code, data, and property are open source. Read it and make up your own mind. VCs (including A16z) have very little of it. “
“I am concerned that the industry is being distracted under false pretenses”
Dorsey explained In another tweet: “I am concerned that ‘the industry’ is being distracted on false pretenses when we can all work on things that have a chance of solving the real problems.” He stressed that “the VCs are the problem are ”and“ not the people ”.
Ajit Tripathi, CFA and Head of Institutional Business at Aave commented:
Jack points out a risk that we should acknowledge. It may not be what we want to hear, but the risk of economic centralization from top web3 properties is very real.
Dorsey replied with “Exactly”.
According to Dorsey, he was subsequently blocked on Twitter by Marc Andreessen, the co-founder of Andreessen Horowitz who is now a big investor in Web3 startups. The former Twitter boss wrote:
I am officially banned from web3.
Do you agree with Jack Dorsey and Elon Musk on web3? Let us know in the comment section below.
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Source: Crypto News Austria