Venture capitalists debate non-financial uses in web3 and crypto

Prominent crypto venture capitalists are engaging in an online debate about the viability of non-financial applications in web3 and blockchain technologies. The discussion questions whether these use cases have faltered due to insufficient investor interest and poor product-market fit, or if their most promising era is yet to come. The clash began on Friday.

The online exchange among influential figures in the crypto venture capital space highlights a divide in perspectives on the evolution of web3 and blockchain beyond traditional financial applications.

At the center of the debate is the question of whether non-financial use cases—such as decentralized identity, content ownership, or collaborative platforms—have underperformed because of limited demand from investors and challenges in achieving product-market fit. Some participants argue that these innovations have not met expectations, pointing to a lack of traction in the market.

Others counter that the potential for non-financial applications remains strong, suggesting that future developments could unlock significant opportunities in web3 and crypto ecosystems. This optimistic view posits that the best days for such technologies are still ahead, driven by ongoing advancements and growing adoption.

The discussion ignited on Friday, initiated by a key figure whose comments sparked the broader conversation. As the debate unfolds online, it underscores the ongoing search for sustainable models in the blockchain sector, where financial tools have dominated but non-financial innovations continue to be explored.

This clash reflects broader tensions in the crypto investment landscape, where venture capitalists weigh the risks and rewards of diversifying beyond finance-centric projects.

Awọn iroyin ti o ni ibatan

A CoinDesk opinion column argues that cryptocurrencies have failed to deliver practical utility after over a decade of promises. Author VerifiedX’s Pollak highlights poor user experiences, speculative focus, and technical barriers as key reasons for limited real-world use. Global ownership remains below 10%, with even less actual usage for payments.

Ti AI ṣe iroyin

Venture capitalists in the cryptocurrency space say investments in artificial intelligence have entered a post-hype phase, focusing on practical applications rather than broad-scale efforts. At Consensus Hong Kong 2026, investors Anand Iyer of Canonical Crypto and Kelvin Koh of Spartan Group highlighted a shift toward utility-driven AI tools amid declining crypto prices.

At the iConnections conference in Miami, institutional investors showed renewed interest in digital assets despite bitcoin's 25% decline this year. Allocators now view crypto as a core part of alternative investments, led by family offices. Regulatory clarity remains a key hurdle for broader adoption.

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In a recent opinion piece, Brian Huang, cofounder and CEO of Glider, argues that crypto ETFs fail to capture the full potential of digital assets by limiting ownership rights and utility. He advocates for onchain direct indexing as a superior alternative that preserves control and enables personalization. Huang warns that wrapping next-generation assets in outdated structures hinders innovation in finance.

 

 

 

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