Jack Dorsey and Elon Musk Raise Concerns Over Web3 as Skepticism About Ownership Grows

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 involved to see ‘the trade’ be distracted below false pretenses once we may all be engaged on issues which have an opportunity at fixing the true points,” 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 personal ‘web3.’ The VCs and their LPs do. It won’t ever escape their incentives. It’s in the end a centralized entity with a special label. Know what you’re stepping into.”

His remark adopted Musk’s tweet a day prior stating that web3 “appears extra advertising and marketing buzzword than actuality proper now.” The Tesla boss additional tweeted, asking: “Has anybody seen web3? I can’t discover it.” Dorsey replied: “It’s someplace 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 (also called A16z), which has been closely pushing web3. “As the biggest investor within the house, we all know web3—however we additionally perceive 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 is aware of precisely the large rip-off A16z is perpetrating.” Another Twitter consumer described: “This tweet is referencing the shady crypto initiatives being funded by Silicon Valley juggernaut VC agency A16z (Andreessen Horowitz). They’re creating cash like solana after which utilizing their infinite capital to market them, explode in market caps then dump the cash on unsuspecting folks.”

Web3 and Twitter

Balaji Srinivasan, a common associate at A16z who was the CTO of crypto change Coinbase, disagreed with Dorsey and introduced up Twitter for example. He wrote: “Twitter began as a protocol, the free speech wing of the free-speech get together. Then company & political incentives led to deplatforming & censorship. Web3 affords the likelihood, not assure, of one thing higher.”

Dorsey replied: “All false. Twitter began as an organization. It’s had company incentives from day 1. It’s attempting to offset these, and it’ll, by 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 remains 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 occupied with it regardless of some information articles suggesting in any other case. He tweeted: “I’ve nothing to do with ‘web3.’ WSJ and others want names and images 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 correct that many web3 initiatives have possession points.

Thorn continued: “This may be very seen with newer L1 chains, whose provides are far more centralized than these from the ICO period (not to mention bitcoin). Hard to see how the provides (& governance) of those cash decentralize over time.”

Alexander Leishman, CEO of River Financial, wrote: “Jack will get it. Web3 will hold making folks numerous $$, however don’t delude your self.”

However, some folks disagree with Dorsey to some extent. The founders of the crypto change 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 associate at A16z, argued: “In web3, all of the code, knowledge, and possession is open supply. Read it and determine for your self. VCs (together with A16z) personal little or no of it.”

‘I’m Concerned to See the Industry Be Distracted Under False Pretenses’

Dorsey explained in a special tweet: “I’m involved to see ‘the trade’ be distracted below false pretenses once we may all be engaged on issues which have an opportunity at fixing the true points.” He emphasised that “The VCs are the issue,” and “not the folks.”

Ajit Tripathi, CFA and head of institutional enterprise at Aave, commented:

Jack is declaring a danger we should always acknowledge. It will not be what we need to hear however the danger 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 beneath.