VCs rule Web3? Say it ain't so!
Jack's is Evolving into a Bitcoin Maxi as he goes Scorched Earth on Web3 Influencers
Web3 promises to create a decentralized internet that users own while sharing revenues in the process.
Jack Dorsey, the former CEO of Twitter, sure doesn't think that's true.
Jack claims that you don't own Web3 and that VCs and LPs do. Unfortunately, this is partially true as a16z pours money into the space at a frightening clip that will undoubtedly influence how people interact with web3 platforms.
They recently launched a new crypto fund and have a stake in opensea and Coinbase. VCs have invested $6 billion into crypto in Q3 2021, and that will continue to ramp up as more big brands like Adidas find a way to get in on the fun.
In a sense, Jack is right. Money is measured and stored energy. Money dictates where we spend our time and attention. So when you have a lot of money, you can also influence where people direct their energy.
Web3 is the creator economy, and people's attention powers it.
Jack understands how the VC and LP world works firsthand at a very intimate level. He's had to satisfy investors and key stakeholders while running Twitter and Square. Jack is also a Bitcoin maxi, and maxis attack everything that counters the Bitcoin network.
So, keep that in mind as he goes all scorched earth on the promise of Web3.
a16z, on the other hand, is doubling down on Web3, creating media attention that drives more investors into Web3. So it's a self-fulfilling prophecy in a way. Jack even calls out under @cdixon, who works at a16z.
As a16z creates more Web3 products, they will collect passive revenue when users interact with these platforms. Opensea, for example, collects millions in royalties a day from people buying and selling NFTs.
When a16z invests in something, they know how to get media attention and create FOMO.
In Web3, VCs and LPs invest in builders creating dApps on Ethereum and other smart contract platforms. It's important to note that Ethereum is a decentralized platform, but anyone is free to invest and build on it how they want.
All markets start free. When a new monetary technology is introduced to a market, a small group of people often find a way to amass great fortune before anyone else.
Look no further than medieval kings with their gold coins or the East India Trading Company. It's no different today with blockchains or digital money.
As much as Bitcoin maxis claim their network is decentralized, 0.05% own about 27% of the supply. The people who got in early and staked their claim were rewarded.
It's the same with Web3. While we are still early, VCs have an edge in influencing the future world of Web3. However, the users have more power as well.
In Web3, we have a fresh start, at least. So it's up to us to prevent VCs and LPs from becoming another version of Web2 where a Web3 version of Facebook becomes the central tax collecting intermediary.
In Web2, we traded our attention and engagement for a following which we then could monetize. Unfortunately, many centralized corporate companies own Web2 and influence the content we see daily. It’s ironic that Jack would call out Web3 when he works for a centralized social media company deplatforming everyone who disagrees with their narrative.
Web3 is a threat to Web2. Once you see the upside, you can’t unsee it. But, of course, Jack is biased because he’s building on Bitcoin and maxis hate Ethereum and Web3.
Even Elon Musk is trolling Web3. Sure it’s a marketing buzzword, but it’s a great marketing buzzword. It’s less threatening than crypto, and it encompasses all the infrastructure of an open financial system such as DeFi and NFTs.
Anyways, what do you think about Web3?