The pivot to Web3, driven by ideology rather than utility, is akin to a “collective Theranos” that's warping the economy to benefit professional investors
It can feel as if the entire world is bolting on crypto tokens and NFTs. Many in the industry worry the gold rush is akin to a … Tweets: @maxwellstrachan , @martinsfp , @asmallteapot , @ourielohayon , @can , @davewiner , @venkatananth , @carnage4life , @mims , @mikeelgan , @mskidchaos , @jeremiahlee , @fuzheado , @sgwoods , @noahpinion , @ummjackson , and @timmarchman Tweets: Maxwell / @maxwellstrachan : I spent a lot of this year trying to figure out why VCs seem to love Web3 so much—and how that global pivot to Web3 is warping the tech industry. Here is my best attempt at an answer. https://www.vice.com/... @martinsfp : I like to think, were I a VC, that I would stay the hell away from web3 for both ideological and common sense reasons. https://www.vice.com/... @asmallteapot : “Fidelity Investment, the nation's largest 401(k) provider, is allowing people to shove their retirement savings into Bitcoin. Goldman Sachs is offering crypto-backed loans.” Imagine telling this to someone in 2009. https://twitter.com/... @ourielohayon : each internet revolution brings its own pack of haters and criticisms driven by short-term analysis. It was *exactly* the same with early twitter/facebook, with early “mobile apps”. I still have the scars to remember it Keep building. ignore the noise. https://www.vice.com/... @can : excellent, excellent piece. the truth is that many VCs themselves know they are scammed into crypto deals and now can't get out and looking for the next bag holder https://twitter.com/... @davewiner : Stop hyping it. https://www.vice.com/... Venkat Ananth / @venkatananth : an interesting critique of the pivot to web3: “It's like a collective Theranos. A wildly unproven product with nobody at the helm,” per one venture capitalist quoted in this story. https://www.vice.com/... Dare Obasanjo / @carnage4life : This is a great thread on all of the negative incentives being created by VCs which are pressuring founders to create web3 companies. The idea you can create a token and generate a liquidity event for investors without an IPO or acquisition is way too tempting for VCs. https://twitter.com/... Christopher Mims / @mims : This is a really great thread + piece and goes into what are potentially the more sinister aspects of Web3 in a way I did not have the space or time to do more than hint at https://twitter.com/... Mike Elgan / @mikeelgan : No, because there will be no pivot https://www.vice.com/... Mansi P / @mskidchaos : A well written piece by @maxwellstrachan shedding light on the shady incentives for VCs boosting Web3. Let's just say they know things the retail investors don't & the advantage is massive. https://twitter.com/... https://twitter.com/... Jeremiah Lee / @jeremiahlee : Fantastic #LongRead on why Web3 is bullshit—even when occasionally well-intentioned—and why VCs are hyping it. https://twitter.com/... Andrew Lih / @fuzheado : Comparisons of crypto to Theranos and credit default swaps (ie. poorly understood risks resulting in deep disaster) have become more widespread. A good read by @maxwellstrachan with @ProfHilaryAllen on preventing a “major systemic implosion” https://twitter.com/... Steven Woods / @sgwoods : s/web3/?/g “It's like a collective Theranos,” one venture capitalist said. “A wildly unproven product with nobody at the helm.” https://twitter.com/... Noah Smith / @noahpinion : The people quoted in this article making the bullish case for web3 make it sound an awful lot like Amway — mediocre end-use products being sold through “incentives to expand the network”. I hope it isn't just that, because Amway is pretty useless. https://www.vice.com/... Jackson Palmer / @ummjackson : Great piece, well researched and lots of on-the-ground commentary. Not sure how someone can read this and still think it's not super bubbly. https://twitter.com/... Tim Marchman / @timmarchman : If you've been wondering why investors are piling into “Web3” businesses that are obvious scams and why entrepreneurs are putting things “on the blockchain” for no evident reason, here's the story for you: https://www.vice.com/...