One of the internet’s most vocal proponents of Bitcoin voiced an unusually uncharacteristic opinion against Web3 this week. On Monday, Square Block CEO Jack Dorsey took to Twitter to warn blockchain enthusiasts how Web3 has already been co-opted by investors. “You don’t own ‘web3,’” he said in a message spotted by Bloomberg. “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…”
Web3 is the term many in the crypto community use to describe the next iteration of the internet. With the help of technologies like blockchain, they argue the internet will become a more decentralized entity, free of the institutional players that have dominated it since the early days of the platform. Investment firms like Andreessen Horowitz have been some of the most vocal supporters of companies in the space. As of October, the firm had set aside $3.1 billion to invest in crypto and Web3 startups. “It’s somewhere between a and z,” Dorsey said, referencing “a16z,” its nickname when Tesla CEO Elon Musk joined the conversation to ask if “anyone has seen web3?”
It’s unclear what prompted Dorsey to take to Twitter to say what he did. After all, this is the man who wanted the world to know he had a Bitcoin clock in his kitchen when he testified before Congress. It should also be noted Dorsey runs a company that is heavily involved in blockchain technologies.
What is clear is that his tweet caused a stir. As of the writing of this article, the post has attracted more than 5,000 retweets, 2,000 quote tweets and 31,000 likes. Naturally, the Bored Ape contingent showed up to tell Dorsey he was “dead wrong,” but just as many people came to offer support, calling him “based” for his tweet.
For all the buzz Dorsey’s tweet generated, there’s a kernel of truth to what he said. On Monday, The Wall Street Journal, citing a new study from the National Bureau of Economic Research, determined 0.01 percent of those who hold Bitcoin control 27 percent of the digital currency. Another recent study from Nature found that just ten percent of NFT investors completed 85 percent of all transactions involving those assets. Decentralization indeed.
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