VCs clash over non-financial use cases in Web3 and crypto

Chris Dixon, a managing partner at a16z crypto, said that non-financial use cases in crypto will flourish when regulations become clear.

Prominent crypto venture capitalists are clashing online about whether non-financial use cases in crypto, Web3, and blockchain have failed due to a lack of investor demand and product-market fit or if the best days for non-financial applications still lay ahead.

The debate started on Friday when Chris Dixon, a managing partner at venture capital firm a16z crypto, published an article arguing that years of “scams, extractive behavior and regulatory attacks” were the reason that non-financial use cases in crypto have not taken off.

These use cases include decentralized social media, digital identity management, decentralized media streaming platforms, digital rights platforms, Web3 video games and more.

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