Former Twitter CEO Jack Dorsey has ignited a debate about web3 after Tesla CEO Elon Musk criticized it. Dorsey warned of the dangers from centralization, emphasizing that web3 is owned by enterprise capitalists (VCs), hiding below the premise of decentralization. “I’m concerned to see ‘the industry’ be distracted under false pretenses when we could all be working on things that have a chance at fixing the real issues,” Dorsey wrote.
Jack Dorsey Says Web3 Is Owned by VCs, Tells Elon Musk ‘It’s Somewhere Between A and Z’
Jack Dorsey and Tesla CEO Elon Musk raised considerations 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’s ultimately a centralized entity with a different label. Know what you’re getting into.”
His remark adopted Musk’s tweet a day prior stating that web3 “seems more marketing buzzword than reality right now.” The Tesla boss additional tweeted, asking: “Has anyone seen web3? I can’t find it.” Dorsey replied: “It’s somewhere between a and z.”
While Dorsey didn’t specify which firm he was referring to, many individuals on Twitter guessed that he was speaking about enterprise capital agency Andreessen Horowitz (additionally identified as A16z), which has been closely pushing web3. “As the largest investor in the space, we know web3—but we also understand public service,” the A16z web site states.
Some folks shared Dorsey’s skepticism about enterprise capital companies. Cory Klippsten, founding father of Swan Bitcoin, commented: “Jack knows exactly the massive scam A16z is perpetrating.” Another Twitter consumer described: “This tweet is referencing the shady crypto projects being funded by Silicon Valley juggernaut VC firm A16z (Andreessen Horowitz). They’re creating coins like solana and then using their endless capital to market them, explode in market caps then dump the coins on unsuspecting people.”
Web3 and Twitter
Balaji Srinivasan, a common accomplice at A16z who was the CTO of crypto alternate Coinbase, disagreed with Dorsey and introduced up Twitter as an instance. He wrote: “Twitter started as a protocol, the free speech wing of the free-speech party. Then corporate & political incentives led to deplatforming & censorship. Web3 offers the possibility, not guarantee, of something better.”
Dorsey replied: “All false. Twitter started as a corporation. It’s had corporate incentives from day 1. It’s trying to offset those, and it will, through Bluesky.” He elaborated:
‘Web3’ has the identical company incentives, however hides it below ‘decentralization.’ It’s actually a special cap desk construction.
The former CEO of Twitter, who continues to be the CEO of Block Inc., previously Square Inc., additionally clarified Tuesday that he has nothing to do with web3 and has by no means been all in favour of it regardless of some information articles suggesting in any other case. He tweeted: “I have nothing to do with ‘web3.’ WSJ and others need names and photos to generate clicks.”
Heated Debate Over Web3 Ensues
Many folks chimed in on the dialogue about web3 on Twitter in response to Dorsey’s tweets. Some agree with Dorsey, together with Alex Thorn, head of Firmwide Research at Galaxy Digital, who tweeted:
Jack is true that many web3 initiatives have possession points.
Thorn continued: “This is very visible with newer L1 chains, whose supplies are much more centralized than those from the ICO era (let alone bitcoin). Hard to see how the supplies (& governance) of these coins decentralize over time.”
Alexander Leishman, CEO of River Financial, wrote: “Jack gets it. Web3 will keep making people a lot of $$, but don’t delude yourself.”
However, some folks disagree with Dorsey to some extent. The founders of the crypto alternate Gemini, the Winklevoss twins, joined the dialog. Tyler Winklevoss pointed out that Dorsey bought his first-ever tweet as a non-fungible token (NFT) for over $2.9 million. “Brought to you by web3,” he wrote. His brother, Cameron Winklevoss, noted:
If web2 may provide you with possession of your knowledge and privateness, web2 would have given you possession of your knowledge and privateness. Web3 a minimum of has an opportunity.
Chris Dixon, a accomplice at A16z, argued: “In web3, all the code, data, and ownership is open source. Read it and decide for yourself. VCs (including A16z) own very little of it.”
‘I’m Concerned to See the Industry Be Distracted Under False Pretenses’
Dorsey explained in a special tweet: “I’m concerned to see ‘the industry’ be distracted under false pretenses when we could all be working on things that have a chance at fixing the real issues.” He emphasised that “The VCs are the problem,” and “not the people.”
Ajit Tripathi, CFA and head of institutional enterprise at Aave, commented:
Jack is declaring a threat we must always acknowledge. It will not be what we wish to hear however the threat of financial centralization of prime web3 properties may be very actual.
Dorsey responded with “Exactly.”
According to Dorsey, he was subsequently blocked on Twitter by Marc Andreessen, co-founder of Andreessen Horowitz, who’s now an enormous investor in web3 startups. The former Twitter boss wrote:
I’m formally banned from web3.
Do you agree with Jack Dorsey and Elon Musk about web3? Let us know within the feedback part under.
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