Stories from cryptocurrencies: Billionaire memes dispute threatens industry unity
- By Blockchain enthusiasts
- February 16, 2023
VC and his LP will do this, "You don't have 'web3'."
JackDorsey tweeted this unfathomable streak in mid-to-late December, shortly after he stepped down as Twitter's responsible person and committed to furthering his BTC desires. The article, which criticized the rights of venture investors and limited partners trying to reorganize big data in blockchain applications, known as web3, quickly became controversial among members of Silicon Valley's exploitative class. They are increasingly vocal in the debate over what many predict will be the final stage of the technological revolution. ElonMusk is with Dorsey; Mark Anderson was his opponent.
Proponents say the web3 reforms to build a more powerful network on top of the blockchain system -- the basic distributed ledger system software that forms Bitcoin and other cryptocurrencies -- promise a democratisation of commerce and data. In theory, he would cut through traditional intermediaries and gatekeepers, allowing consumers to buy and sell immediately, with a greater stake in the systems they use.
But Mr Dorsey sees things differently. "It will never escape his encouragement," she continued in her article on the importance of the venture capitalist in web3. Finally, it's a separate solid line with different labels."
If you find this information incredible and wonder what interest there is between them, you're not alone. This kind of billionaire has discussed the future of the Internet, a device that everyone uses, adopting a new language that not many people accept. Let's break the code.
What is a problem?
First, the technical content is divided on what web3 means and other key issues.
"I don't think the definition is easy," admits SamBankman-Fried, the billionaire founder of cryptocurrency trading hub FTX. He tried several simple explanations, but they didn't work." "I think it feels like a lot of people see what they want to see in it," he added.
Essentially, web3 refers to networks that operate in what is called token economics. A currency is a digital unit of a cryptocurrency. In web3, developers and users have shared economic benefits, and anyone can get access to cryptocurrencies. Customers immediately benefit from his dedication -- such as imagination, mobile games, participation or savings. They can also help future community operators manage methods that they can use to vote on the currency established by special new projects to make management decisions.
Such independent innovation will change the way businesses are set up and run, say believers. According to a report by Messari on the 2022 market, web3 is an "unstoppable force" that will move social development from an Internet technology based on monopolistic 'rental land resources' to an endless frontier of new uncertainty." Messari founder RyanSelkis believes that "cryptocurrencies bring credible reform to monopolies in all industries."
Yet big investors seem fascinated by the endless frontiers. Last year, venture capitalists pushed about 460 blockchain projects and spent nearly $12.75 billion, $2.75 billion more than the 155 deals worth $2.75 billion that were used in 2020, according to Pitchbook data released to The New York Times. The venture capital units of cryptocurrency exchanges such as Coinbase and FTX are some of the biggest dealmakers, fuelling anxiety about corporate market concentration. This means that more and more key players are controlling a patchwork of physical lines that, it is said, can be dominated by ordinary people.
Mr Dorsey's warning follows complaints from many in the cryptocurrency world that insiders with outsized control can impede government procurement processes and undermine the democratic style.
AndreessenHorowitz, a venture capital firm founded by Mr. Andreessen, owns equity in Compound and Uniswap, two web3 processes that allow loans and payments. AlexisGoldstein, director of financial policy at OpenMarkets, a developing China think tank, pointed out in recent testimony to the Joint Economic Committee that the two software are used by just 1 percent of currency holders in Congress to govern more than 95 percent of currencies.
"While those in the cryptocurrency space advocate the 'democratic' benefits of digital currencies, the reality is that the concentration of money and power in cryptocurrencies is even greater than in the traditional financial system," Goldstein Women testified.
Why does saliva excel?
The increasingly heated war of words and memes between billionaires has exposed cracks in the increasingly lucrative crypto industry as he tries to sell his advantages to policymakers and the public. Cryptocurrency blinds as many people as it does, and its popularity depends on a united front of its popular supporters.
But that unity has frayed. In a reply to Mr Dorsey, Mr Musk, the CEO of Tesla, quipped that he could not find web3. Mr Dorsey counters that it is "between A and z", which is also AndreessenHorowitz's coinage, known as A16Z.
Mr. Anderson was very unhappy. In the crypto space, AndreessenHorowitz, which has billions of dollars in its coffers, has just built an elite team of Washington advice to promote policies to ensure its corporate vision is realized. Mr Andreessen blocked Mr Dorsey on Twitter and professionally posted a meme in his feed, silencing "bad followers" with "awkward views" and running to the call sign "Dishonest web3takes".
AndreessenHorowitzandBlock company (formerly known as Square) founded by Mr Dorsey, didn't respond to requests for comment.
The crypto world has been hoping to build on last year's success. Coinbase launched a blockbuster IPO in April. In October, exchange-traded funds linked to bitcoin futures appeared, and crypto-related investment activities can be conducted on trading sites created. In December, six executives spoke at a US House of Representatives hearing, focusing on the democratic power of blockchain.
However, in order for cryptocurrencies to take off really fast, policymakers and the public must be fascinated by probability. We have to convince them that blockchain technology can be a useful proprietary tool beyond speculation and profit. On the other hand, the debate over web3 has brought great attention to the problem.
It may be exciting, "says Mr Bankman-Fried. He said he was wary of web3, but he was "definitely concerned that some of what's going on now looks at least as good as a robbery."
Is there anything strange?
Some of the new encryption projects are already experiencing unusual activity.
Take ICP, the most popular cryptocurrency last spring. It's the driving force behind InternetComputer, a blockchain system that aims to displace cloud computing technology leaders like Amazon and is heavily backed by AndreessenHorowitz. Amid massive news of related token offerings, prices rose quickly and fell sharply in a matter of weeks. One company tracking blockchain technology-themed activity saw 44 ids associated with project "insiders," mainly venture capitalists. They will keep more than $2 billion of ICP in each coin and in the currency.
The property developers behind InternetComputer deny that the whole process cannot benefit in-house staff. But ICP's price has not recovered, and some investors have expressed a loss of confidence in the project.
In October, crypto venture capital firm DivergenceVentures was caught using the system to collect and use $2.5 million worth of currency RibbonFinance consumers had prepared for a new project they encouraged. This raises the suspicion of acting on internal documents. It said it was not the only fraudulent business.
Intentions aside, things went wrong. There were errors and hacks, and there were some difficult issues to deal with.
ConstitutionDAO, a body hastily formed to invest in the constitution, raised about $47m from more than 1,000 investors in November. However, after the investment failed, DAO's management team struggled to come up with a revenue project investment plan, as promoters debated in online wechat groups. The average investment is about $200, but now an investor will likely have to spend that much to get his cryptocurrency back. (ConstitutionDAO did not respond to requests for assessment.)
Proponents of moving beyond the ideological gap in web3 have been fighting hard for legal procedures. Venture capitalists have pushed senior officials to embrace web3 solutions and recommendations. Proletarian revolutionaries such as Messari's Mr Selkis have drawn up lists to encourage politicians. However, fitness still seems to lack a united front.
While he seems to have turned his attention elsewhere, the debate Mr Dorsey sparked last month is being repeated online. On Thursday, he launched the BTC Legal and Regulatory Defense Stock Fund for developers who run into "legal issues," and he said Block will participate in BTC mining.
AndreessenHorowitz's elite team of policy makers has been focusing outside of Washington, D.C., and delivering advice to world leaders on how to become a "web3 common nation."
However, cryptocurrencies are not the only problem on every tech billionaire's mind.
Mr Bankman-Fried, the founder of the FTX trading centre, donated about $5m to Mr Ban's campaign during the previous campaign and said he had already brought in "a lot of donations" to US mid-term election-themed events. He was unprepared, which means web3 shows off its financial prowess. On the other hand, he said, he was concerned about "pandemic preparedness." "In some cases, there's some lazy thinking going on right now, and everybody's like, 'Ah, you know, it's like everything's going to be great in the web3 industry,'" he thought. "And I don't know."