Key takeaways
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Kyle Samani declared that “Web3 is dead” as the cryptocurrency industry debates its future.
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Only decentralized finance (DeFi) and decentralized physical infrastructure networks (DePIN) have shown lasting benefit, he said.
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Elie Ben Sasson says cryptocurrencies are facing an “identity crisis.”
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Other industry figures are making similar calls.
Cryptocurrency industry leaders are increasingly questioning the future of Web3, with cryptocurrency venture capitalist Kyle Samani declaring that “Web3 is dead” amid… Ongoing debate On whether the original vision for the sector has given way to a narrower focus on institutional adoption.
Samani, managing partner at cryptocurrency investment firm Multicoin Capital, made the statement on Sunday in response to StarkWare CEO Eli Ben Sasson, who argued that the cryptocurrency industry was suffering from an “identity crisis.”
These comments come after several other prominent figures in the space claimed that “most cryptocurrencies are dead,” a sentiment that has proven troubling for many industry traders.
Crypto identity crisis?
On Sunday, Ben Sasson claimed that he believes cryptocurrencies are going through an “identity crisis.”
The famous founder pointed out a contradiction that he said confuses what cryptocurrencies represent.
“On the one hand, many of the OGs have long since left, and on the other hand, we are finally seeing some love from institutions and TradeFi, which is everything crypto has rebelled against,” he wrote.
Adding: “It challenges the fundamental narrative of cryptocurrencies.”
Crypto’s founding narrative, articulated by many of its early developers, positioned it as a decentralized alternative to traditional finance.
With this in mind, the new path for big banks and anything central is dramatically at odds with this foundation.
Although adoption and capital flows have accelerated rapidly, the sector’s early ideological distance from mainstream finance has become blurred.
Is Web3 dead?
In response to Ben Sasson’s comments, venture capitalist Samani blatantly declared that “Web3 is dead”, with only “Defi and Debin” remaining.
The term Web3 emerged as an umbrella description for the decentralized version of the Internet built on blockchain technology.
Under the Web3 vision, digital identities, assets and data were implemented on the blockchain rather than relying on centralized platforms.
The concept also includes decentralized social networks, blockchain gaming, and digital ownership via NFTs.
Web3 gained prominence during the 2020-2021 cryptocurrency bull market as investors poured capital into projects promising to reshape industries ranging from entertainment and gaming to social media.
