The former CEO of Twitter, Jack Dorsey has ignited a debate about web3 after Tesla CEO Elon Musk criticized it. Dorsey warned of the risks from centralization, emphasizing that web3 is owned by venture capitalists (VCs), hiding under 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 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’s ultimately a centralized entity with a different label. Know what you’re getting into.”
His comment followed Musk’s tweet a day prior stating that web3 “seems more marketing buzzword than reality right now.” The Tesla boss further tweeted, asking: “Has anyone seen web3? I can’t find it.” Dorsey replied: “It’s somewhere between a and z.”
While Dorsey did not specify which company he was referring to, many people on Twitter guessed that he was talking about venture capital firm Andreessen Horowitz (also known as A16z), which has been heavily pushing web3. “As the largest investor in the space, we know web3—but we also understand public service,” the A16z website states.
Some people shared Dorsey’s skepticism about venture capital firms. Cory Klippsten, founder of Swan Bitcoin, commented: “Jack knows exactly the massive scam A16z is perpetrating.”
Another Twitter user 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.”
