In a move that sent shockwaves through the cryptocurrency investment community, Kyle Samani, the influential co-founder of Multicoin Capital, publicly declared he no longer believes in the foundational vision of Web3. This stunning reversal, communicated via a now-deleted social media post in late 2024, preceded his formal resignation and challenges core narratives about blockchain’s ultimate societal role. Consequently, his comments force a rigorous re-examination of the technology’s potential beyond financial ledgers.
Kyle Samani’s Web3 Vision Departure and Its Immediate Impact
Kyle Samani articulated his revised perspective with stark clarity before stepping down from Multicoin Capital. He stated that cryptocurrency had not proven to be as fundamentally transformative as early proponents, including himself, had anticipated. Specifically, Samani framed blockchain technology primarily as an advanced ledger system. While he acknowledged its power to reshape global finance profoundly, he argued its applications would likely remain concentrated in that domain. This perspective immediately sparked intense debate among developers, investors, and analysts regarding the ceiling of blockchain innovation.
Samani’s critique carries significant weight due to his established track record. As a co-founder of a leading crypto-focused venture firm, he helped fund and shape numerous foundational Web3 projects. Therefore, his pivot from evangelist to skeptic represents a pivotal moment for the industry’s ideological direction. Furthermore, his decision to delete the post shortly after publication added a layer of intrigue, suggesting the sensitive nature of such a declaration from a figure of his stature.
The Core Argument: Blockchain as a Ledger, Not a Panacea
Samani’s central thesis reduces blockchain’s core utility to its function as a secure, immutable, and decentralized ledger. This view directly contradicts the expansive Web3 narrative, which envisions a user-owned internet revolutionizing social media, content creation, gaming, and digital identity. For instance, proponents often cite decentralized autonomous organizations (DAOs) and tokenized ownership models as pathways to this future. However, Samani’s comments imply these use cases may not achieve mainstream viability or offer superior alternatives to existing web infrastructure.
His stance finds some support in current market realities. Many consumer-facing dApps struggle with user experience hurdles, scalability issues, and low adoption outside speculative finance. The following table contrasts the Web3 vision with Samani’s reported assessment:
| Web3 Vision (Broad) | Samani’s Assessment (Narrow) |
|---|---|
| Decentralized social networks replacing Twitter/Facebook | Primary value in financial settlement and asset ownership |
| User-owned metaverses and gaming economies | Limited roles beyond finance, except for specific niches |
| Complete overhaul of digital identity and data ownership | Blockchain as a superior accounting system for money and assets |
| Democratization of all online platforms and services | DePIN (Decentralized Physical Infrastructure) as a noteworthy exception |
The Notable Exception: DePIN and On-Chain Confidentiality
Despite his narrowed outlook, Kyle Samani identified two areas he still considered compelling. Firstly, he highlighted DePIN (Decentralized Physical Infrastructure Networks) as a noteworthy sector. DePIN projects leverage crypto tokens to incentivize the building and maintenance of real-world infrastructure like wireless networks, data storage, and sensor networks. This model aligns with a more pragmatic application of crypto economics to tangible problems.
Secondly, Samani pointed to on-chain confidentiality as the last major unanswered question in crypto. This refers to developing techniques for conducting private transactions and executing confidential smart contracts on public blockchains. Solving this would address critical privacy concerns that hinder institutional and mainstream adoption for certain use cases. Significantly, he suggested that for all other “interesting questions,” the industry has essentially found its answers, implying a maturation phase.
Context and Expert Reactions to a Visionary’s Pivot
Kyle Samani’s comments did not occur in a vacuum. They arrived during a period of industry consolidation following the 2022-2023 market downturn. Many projects promising a decentralized web failed to deliver sustainable products, leading to investor fatigue and a refocusing on infrastructure and utility. Several other venture capitalists and researchers have recently expressed similar, if less absolute, sentiments, calling for a focus on product-market fit over ideological purity.
Industry experts offered mixed reactions. Some agreed that tempering expectations could lead to more sustainable growth, arguing that blockchain’s “killer app” to date remains finance (DeFi, Bitcoin as digital gold). Others vehemently disagreed, citing rapid innovation in areas like artificial intelligence and blockchain integration, decentralized social protocols, and new scalability solutions. They view Samani’s departure from the Web3 vision as a premature conclusion in a still-evolving field.
Implications for Multicoin Capital and Crypto Investment
The founder’s public shift and subsequent resignation inevitably impact Multicoin Capital’s strategic direction. The firm, known for its strong thematic investing and public advocacy of Web3, must now navigate this changed internal perspective. Key questions for the venture capital sector include:
- Investment Thesis Shift: Will Multicoin and similar firms de-prioritize pure Web3 consumer applications in favor of financial infrastructure and DePIN?
- Founder Sentiment: Does this reflect a broader, unspoken sentiment among early crypto investors who are now reassessing the technology’s limits?
- Market Signaling: How will public markets and later-stage investors interpret such a definitive statement from a top-tier crypto fund co-founder?
This episode underscores the crypto industry’s transition from boundless hype to a more nuanced, utility-driven phase. It places a sharper focus on measurable adoption and revenue over grand visions of total internet overhaul. Moreover, it highlights the natural evolution of technological paradigms, where early visionaries sometimes diverge from the path of the ecosystem they helped create.
Conclusion
Kyle Samani’s declaration that he no longer believes in the Web3 vision marks a significant ideological rupture within the cryptocurrency establishment. His reduction of blockchain to a transformative yet fundamentally financial ledger challenges the core narrative of a decentralized internet revolution. While he sees continued value growth and specific promise in areas like DePIN, his stance signals a call for pragmatic focus. Ultimately, this moment may accelerate the industry’s maturation, separating enduring utility from speculative narrative and forcing a clearer definition of what problems blockchain technology is uniquely positioned to solve.
FAQs
Q1: What exactly did Kyle Samani say about Web3?
Kyle Samani stated he no longer believes in the broad vision of Web3. He described blockchain primarily as a ledger that will reshape finance but see limited roles beyond that, with DePIN and on-chain confidentiality as notable exceptions.
Q2: Why is Kyle Samani’s opinion on Web3 so important?
As a co-founder of Multicoin Capital, a leading crypto venture firm, Samani was a key influencer and funder of early Web3 projects. His public reversal from believer to skeptic carries significant weight and signals a potential shift in high-level investment sentiment.
Q3: What is DePIN, and why did Samani highlight it?
DePIN stands for Decentralized Physical Infrastructure Networks. These projects use crypto tokens to incentivize people to build and maintain real-world infrastructure like wireless networks or data storage. Samani likely sees it as a concrete, utility-driven application of crypto economics.
Q4: Did Kyle Samani say crypto has no future?
No. He explicitly said the value of crypto would increase and that blockchain would reshape finance. His critique was focused on the expansive Web3 vision of rebuilding the entire internet, not on the technology’s core financial applications.
Q5: How might this affect the broader cryptocurrency market?
It could lead to a refocusing of investment and developer talent towards financial infrastructure, DePIN, and privacy solutions, potentially away from some consumer-focused Web3 applications. It also encourages a more measured, utility-based evaluation of projects.
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