Kyle Samani, co-founder of Multicoin Capital, declared this week that Web3 is dead and only decentralized finance and decentralized physical infrastructure networks still matter. Samani's statement came in response to remarks from StarkWare CEO Eli Ben-Sasson, who said the crypto industry appears to be facing an identity crisis. The exchange highlights growing tension within the industry as traditional financial institutions embrace crypto while many early supporters leave the sector.
Crypto Leaders Debate the Industry's Future
Ben-Sasson raised concerns about crypto's changing identity in a post on X. He noted that crypto originally positioned itself against traditional finance, but banks, asset managers and large institutions are now becoming major participants in the market. Responding to the post, Samani wrote that Web3 is dead and all that remains is DeFi and DePIN. The statement suggests that many of the broader Web3 narratives have lost momentum.
DeFi and DePIN Continue to Attract Attention
DeFi allows users to borrow, lend, trade and earn yield without traditional intermediaries. DePIN projects connect blockchain incentives with real-world infrastructure, supporting services such as wireless coverage, data storage, and computing resources. Both sectors have attracted capital despite broader market cycles. The Multicoin Capital executive's comments reflect a trend where market participants are prioritizing products with clear business models and active users.
Samani Questions Hyperliquid Platform
Samani recently argued that Hyperliquid appears just as suspicious as Binance. He claimed that many issues previously raised against Binance also apply to Hyperliquid. Mike Dudas, an investor at 6MV, rejected the comparison. Dudas argued that Hyperliquid operates differently from centralized exchanges, pointing to the platform's on-chain transparency and its token-holder-focused economic structure.
Debate Arrives During Period of Major Industry Change
The discussion arrives during a period of major change for the industry. Spot crypto ETFs continue attracting institutional capital, and regulatory clarity is improving in several regions. For some observers, Samani's comments reflect the market's maturation. For others, they signal a narrowing vision of what blockchain technology can achieve.
FAQ
What did Kyle Samani say about Web3 this week?
Kyle Samani, co-founder of Multicoin Capital, declared this week that Web3 is dead and only decentralized finance and decentralized physical infrastructure networks still matter. His statement came in response to remarks from StarkWare CEO Eli Ben-Sasson about the crypto industry facing an identity crisis.
Why does Samani believe only DeFi and DePIN remain relevant?
Samani's statement suggests that many broader Web3 narratives have lost momentum. Both DeFi and DePIN have attracted capital despite broader market cycles because they generate measurable utility and revenue, with clear business models and active users.
What comparison did Samani make regarding Hyperliquid?
Samani recently argued that Hyperliquid appears just as suspicious as Binance, claiming that many issues previously raised against Binance also apply to Hyperliquid. Mike Dudas rejected this comparison, pointing to Hyperliquid's on-chain transparency and token-holder-focused economic structure.
