Twitter CEO Jack Dorsey sparked a debate about Web3 after Tesla CEO Elon Musk criticized it. Dorsey warned of the risks of centralization, noting that Web3 is owned by venture capitalists (VCs) hidden under the premise of decentralization.

“I am concerned that the industry is being distracted by ‘covert’ actions as we all work on a chance to solve real problems.”

Elon Musk (left) and Jack Dorsey (right)

Jack Dorsey: Web3 is owned by VC

Jack Dorsey and Tesla CEO Elon Musk raised concerns about Web3 this week. Dorsey alarm Monday:

“They don’t own Web3, they own the VCs and Liquidity Providers (LPs). Web3 will never escape its impulse. Ultimately, it is essentially a centralized entity with a different label. You have to understand what you are getting into. ”

In one tweet Prior to Jack’s comment the same day, Elon Musk said that Web3 “seems more of a marketing word than a practical one at the moment. Has anyone seen Web3 yet? I can’t find it. “. Dorsey answer: “It’s somewhere between a and z”.

While Jack Dorsey didn’t specify which company he was referring to, many on Twitter assumed it was venture capital company Andreessen Horowitz (aka A16z). This company was very active in promoting Web3.

“As the largest investor in this area, we know Web3, but we also understand the public service,” says the A16z website.

Some also agree with Dorsey’s skepticism towards venture capital firms. Cory Klippsten, Founder of Swan Bitcoin, commented:

“Jack knows exactly what the big scam A16z is up to.”

Another Twitter user described:

“This tweet refers to shady crypto projects funded by VC company A16z (Andreessen Horowitz) in Silicon Valley. They create coins like SOL and then use their endless capital to mine them, trigger a skyrocketing market value, and then sell them to gullible people. ”

Web3 and Twitter

Balaji Srinivasan, a General Partner at A16z, is the CTO of Coinbase Exchange. be of different opinion with Dorsey and take Twitter as an example.

“Twitter started as a protocol, the wing of the Free Speech Party. Later, due to business and political impulses, accounts were blocked and censored. Web3 offers the possibility for something better, but no guarantees. ”

Dorsey replied:

“Completely wrong. Twitter started as a company and was driven by the company from day one. Twitter is trying to make up for that and will do so through Bluesky. Web3 has similar corporate incentives, but in a decentralized form. It’s really a different type of pivot table- Structure.”

Former CEO of Twitter and current CEO of Block Inc. (formerly Square Inc.) also made it clear on Tuesday that he had nothing to do with Web3 and was never interested in it, although several articles suggest otherwise.

“I have nothing to do with Web3. The WSJ and other newspapers need names and photos to attract attention. ”

Hot debate on Web3 after that

Many people also took part in the Web3 discussion on Twitter in response to Dorsey’s tweets. Some people have a similar view, as Alex Thorn, Head of Firmwide Research at Galaxy Digital, has tweet:

“Jack is right that a lot of Web3 projects have ownership issues. This is very visible in newer Layer 1 chains, which have a much more centralized supply than those from the ICO era (let alone Bitcoin). It’s hard to see how decentralized the supply (& governance) of these coins is over time. ”

Source: Galaxy Digital Research

Alexander Leishman, CEO of River Financial, wrote:

“Jack understands. Web3 will continue to make big bucks for everyone, but don’t fool yourself.”

However, some people disagree with Dorsey to some extent. The twins of the twin exchange founder Winklevoss also commented. Tyler Winklevoss shown that Dorsey sold his first tweet as NFT for over $ 2.9 million.

“Thanks to Web3, which enables you to do just that.”

On the other hand, Cameron Winklevoss notice:

“If Web2 can give you data ownership and privacy, Web2 will give you that. At least Web3 has a chance. ”

Chris Dixon, a partner at A16z, argues:

“In Web3, all code, data, and property rights are open source. Read it and make up your own mind. VCs (including the A16z) have virtually no ownership. ”

Worried if the industry is distracted with the wrong topics

Dorsey to explain Another tweet read: “I am concerned that the industry will be distracted by ‘hidden’ problems when we are all working to solve real problems.” He emphasized that “VC is the problem, not the people” .

Ajit Tripathi, CFA and Head of Institutional Sales at Aave, commented:

“Jack points out a risk we should take. It’s probably not what we want to hear, but the risk of economic concentration of Web3 assets is very real. ”

Dorsey replied, “Exactly.”

According to Dorsey, he was later blocked on Twitter by Marc Andreessen. Marc is co-founder of Andreessen Horowitz and currently an important investor in Web3 startups. Brothers tweet:

“I am officially banned from Web3”.

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