Bitcoin world
Kyle Samani’s vision for Web 3: The stunning reversal that shook the foundations of cryptocurrencies
In a stunning development that has sent shockwaves through the cryptocurrency community, Kyle Samani, co-founder of Multicoin Capital, has publicly announced his loss of faith in Web3’s expanded vision, marking a pivotal moment for blockchain philosophy and investment strategy in early 2025. This unexpected reversal from a prominent venture capitalist who has helped shape the cryptocurrency narrative for nearly a decade reveals a deeper maturity in the industry and fundamental reassessments taking place behind the scenes. The announcement, which was shared across social media before Samani’s official resignation, represents more than just a personal opinion — it points to potential inflection points for the perceived limitations of blockchain technology and its practical applications.
Explaining Web3 Reversal by Kyle Samani
Kyle Samani expressed his changed viewpoint with remarkable clarity before deleting the controversial post. He essentially described blockchain technology as “just a ledger” that would undoubtedly reshape global finance but would find only limited utility beyond that basic function. This represents a significant departure from the Web3 evangelism that characterized Multicoin Capital’s early positioning and investment thesis. Samani specifically noted that while cryptocurrency values will continue to increase, the answers to the most interesting technological questions – with the notable exception of on-chain secrecy – have already been discovered and implemented.
The venture capitalist has identified one area that retains his interest: DePIN (decentralized physical infrastructure networks). These networks leverage blockchain tokens to coordinate and catalyze the deployment of real-world infrastructure, including wireless networks, data storage, and computing resources. Samani’s continued faith in DePIN suggests that his disillusionment centers around blockchain’s social and governance applications rather than its economic coordination mechanisms. This nuanced stance reflects broader industry conversations about the appropriate scale of blockchain and realistic ambitions.
Multicoin Capital’s cutting-edge investment philosophy
Multicoin Capital has established itself as one of the most influential venture firms in the cryptocurrency space since its founding in 2017, managing nearly $3 billion in assets across multiple funds. The company has gained recognition for its early investments in the Solana, Helium, and The Graph projects that embody Web3’s vision of decentralized applications and user-owned Internet infrastructure. So Samani’s public statements represent not only personal development but potential strategic shifts within the organization he co-founded with Tusshar Jain.
Industry analysts immediately noticed the importance of timing. Samani made his comments shortly before announcing his resignation from Multicoin Capital’s day-to-day operations, although he retained a partnership role and economic interests. This sequence suggests that his philosophical reappraisal preceded this and may have influenced his practical departure. The company’s recent investment patterns show an increased focus on infrastructure and financial primitives rather than consumer-facing decentralized applications, in line with Samani’s stated views.
Historical context of the Web3 disillusionment
Samani’s perspective shift follows a broader pattern of blockchain realism that has emerged over the period 2024-2025. Several factors contributed to the maturity of this industry:
- Regulatory clarity Setting clearer boundaries for blockchain applications
- Technical limitations Become clear about scalability and user experience
- Market cycles Separating sustainable projects from speculative concepts
- Institution accreditation It focused primarily on financial infrastructure rather than social applications
Prominent tech experts like Moxie Marlinspike and Steven Diehl expressed similar doubts about Web3’s decentralization claims years ago, but Samani’s comments carry unique weight given his insider status and investment clout. His perspective reflects practical experience in employing capital rather than theoretical criticism.
The DePIN Exception and the Practical Future of Blockchain
Samani’s continued endorsement of DePIN projects reveals his private rather than public skepticism about blockchain. Decentralized physical infrastructure networks represent perhaps the most tangible application of blockchain outside of pure finance, creating real-world utility through token incentives. Successful DePIN applications include:
| project | Infrastructure type | Current status |
|---|---|---|
| Helium network | Wireless connection | More than 600,000 touch points globally |
| filecoin | Decentralized storage | Capacity: 20+ expybytes |
| Introducing the network | GPU computing | Industry adoption is increasing |
These networks demonstrate blockchain’s unique ability to coordinate the deployment of physical infrastructure without the need for centralized corporate entities. Samani’s distinction suggests that he views blockchain primarily as a superior coordination mechanism for allocating resources rather than as the basis for entirely new Internet architectures. This practical assessment is consistent with the increasing institutional adoption patterns observed throughout 2024.
Industry feedback and expert analysis
The cryptocurrency community responded with heated debate following Samani’s comments. Ethereum co-founder Vitalik Buterin previously addressed similar criticisms in his article “The End of the Beginning,” acknowledging the limitations of blockchain while maintaining optimism about incremental progress. By contrast, Solana founder Anatoly Yakovenko has consistently emphasized blockchain’s ability to rebuild the Internet’s infrastructure from first principles.
Many industry analysts interpreted Samani’s comments as representing venture capital’s evolving approach to blockchain investing. Web3’s initial vision promised revolutionary changes in social media, content creation, and digital identity. However, practical implementation revealed significant challenges regarding user adoption, regulatory compliance, and technical scalability. As a result, investment has shifted towards infrastructure and financial applications, showing clearer paths towards sustainability and profitability.
On-Chain Secrecy: The Remaining Frontier
Samani specifically highlighted on-chain secrecy as the last major unsolved problem in blockchain, pointing to technologies like zero-knowledge proofs and fully homomorphic cryptography. These privacy-preserving technologies enable transaction validation without revealing sensitive data, potentially opening up blockchain applications in healthcare, enterprise collaboration, and personal finance. Several projects, including Aztec Network and Penumbra, are actively developing solutions in this area, suggesting that Samani’s critique acknowledges ongoing innovation within specific technical boundaries.
Financial institutions in particular require confidentiality to adopt blockchain in regulated markets. The transparency of current public blockchain creates compliance challenges for the integration of traditional finance. Therefore, solving the confidentiality problem could represent the next major catalyst for the adoption of blockchain technology after infrastructure development and scalability improvements.
conclusion
Kyle Samani’s reflection of Web3’s vision represents the natural maturation of blockchain technology from revolutionary promise to practical implementation. His perspective highlights the proven power of blockchain in financial infrastructure and the emerging potential in orchestrating physical infrastructure through DePIN networks, while questioning broader social and governance applications. This careful assessment reflects an industry-wide recalibration as blockchain technology moves beyond speculative enthusiasm toward sustainable benefit. The continued focus on on-chain confidentiality and the development of DePIN suggest that blockchain evolution is continuing, albeit within more specific parameters than early Web3 visionaries envisioned.
Frequently asked questions
Q1: What exactly did Kyle Samani say about Web3?
Kyle Samani said he no longer believes in Web3’s vision, describing blockchain as primarily a ledger that will reshape finance but with limited roles beyond that. He made these comments on social media before announcing his operational resignation from Multicoin Capital.
Q2: Does Samani still believe in any blockchain applications?
Yes, he specifically mentioned the continued belief in DePIN (decentralized physical infrastructure networks) and acknowledged that on-chain secrecy remains an important unresolved issue. His criticisms seem to focus on the social and governance applications of blockchain rather than its economic coordination mechanisms.
Q3: How might this impact Multicoin Capital’s investment strategy?
While Samani maintains his partnership, his reduced operational role and stated views suggest that Multicoin may increasingly focus on financial infrastructure and applications rather than consumer-facing Web3 projects. The company’s recent investments already demonstrate this shift in trend.
Q4: What are DePIN networks and why are they important?
DePIN networks use blockchain tokens to coordinate and catalyze the deployment of real-world infrastructure, including wireless networks, data storage, and computing resources. It represents the most obvious application of blockchain beyond finance, creating material benefit through decentralized coordination.
Q5: Will Web3 development slow down after these criticisms?
Development continues across multiple blockchain technology ecosystems, but the focus has shifted toward practical applications with clear benefit. Web3’s initial expanded vision has evolved into more targeted development in finance, infrastructure, and specific vertical applications where blockchain offers unique advantages.
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