Twitter founder continuously tweets criticizing Web3 and crypto venture capital, causing dissatisfaction among crypto industry KOLs

Author: Hu Tao

Today, Twitter founder Jack Dorsey continuously tweeted criticisms of Web3 and crypto venture capital, while a16z partner Chris Dixon, The Block founder Mike Dudas, Delphi Digital co-founder Tom Shaughnessy, and many other figures in the crypto industry also joined the discussion.

The event originated from a tweet this morning by the well-known American rapper Cardi B, asking, "Do you think cryptocurrency will replace the dollar?" Jack Dorsey responded that Bitcoin would. As a long-time staunch supporter of Bitcoin, Jack Dorsey's response was expected, but for most crypto enthusiasts, it also reflects his disregard for most cryptocurrencies other than Bitcoin.

Three hours later, Jack Dorsey tweeted again, stating that Web3 is not owned by users, but rather "owned" by venture capital firms (VCs) and their LPs (limited partners). He said, "Web3 will never escape their incentives. It ultimately is a centralized entity with a different label."

As a result, Jack Dorsey's remarks sparked significant dissatisfaction and rebuttal from many in the crypto industry. For example, The Block founder Mike Dudas responded, "Dead wrong, and it's dangerous because you preemptively stifle the hopes and dreams of many brave people trying to shape a truly independent Web3."

Delphi Digital co-founder Tom Shaughnessy stated that funding and control are two entirely different things. VCs can help allocate funds to projects that will ultimately be owned by the community, as they gradually decentralize projects that Web3 users will own and control, while Web2 users will always be on the outside.

ParaFi Capital partner Santiago Roel Santos responded that anyone can fork code, so Web3 is more generous to users. Users control everything in Web3, and their wallets can move across applications. However, if you start building Twitter today, you won't have a chance unless you give users and contributors more rights than VCs.

Messari founder Ryan Selkis tweeted that Web3 projects are partially owned by venture capital firms (VCs) or their limited partners (LPs) and partially owned by retail investors, just like the share distribution of Bitcoin and Twitter. However, only Web3 can allocate ownership to users without requiring principal.

a16z partner Chris Dixon responded that in Web3, all code, data, and ownership are open source. Users can read it and decide for themselves. VCs (including a16z) own very little.

Afterward, Chris Dixon tweeted separately, stating, "I’m a huge fan of Jack and hope we can eventually bring him to ETH and other blockchains. BTC as digital gold is great, but there are other important applications that need other chains."

However, Jack Dorsey quickly responded, "I trust you and your understanding of the system. It’s crucial that we focus our energy on truly secure and resilient technology owned by the masses, not individuals or institutions. Only that foundation can provide the applications you mentioned."

In response to a Twitter user asking, "What role do VCs play in a truly decentralized world?" Jack Dorsey stated, "As an example of their massive profits, they should fund the truly free and open-source software from which they benefit immensely."

In another tweet, Jack Dorsey mentioned that Twitter is advancing a protocol that does not belong to itself or venture capital firms, Bluesky. It is understood that BlueSky was initiated in 2019, aiming to create an open Twitter protocol that allows users to contribute data and access data, rather than a centralized service where social media platforms host content on their websites.

Tesla founder Elon Musk also joined the discussion, tweeting, "Has anyone seen web3? I can't find it." Jack Dorsey replied to this tweet, saying, "It's between a and z," referring to a16z. Previously, Musk had also stated that the current Web3 feels more like a marketing buzzword than a reality.