VCs Clash Over the Fate of Non-Financial Crypto

[tradelikepro]

Over $60.7 million in fees were paid over the last 24 hours to crypto exchanges and decentralized finance applications. Source: DefiLlama

Crypto venture capitalists are debating whether non-financial Web3 projects have failed because investors didn’t support them — or because the products themselves were flawed.

Chris Dixon (a16z crypto) argues that years of scams, regulatory attacks, and extractive behavior slowed adoption of decentralized social media, Web3 games, and digital identity platforms.

Haseeb Qureshi (Dragonfly) pushes back: “No one wanted them. They failed the market test. Pretending otherwise is coping.”

Meanwhile, Nic Carter (Castle Island) warns that venture capital has limited time: building a market takes a decade, but fund deployment periods are only 2-3 years. The debate highlights the tension between long-term vision and short-term market realities in crypto investing.

[madtrader]

lol vcs arguing about why web3 failed feels like a fight we’ve all seen before