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<p>Kyle Samani, co-founder of crypto venture firm Multicoin Capital, has declared that Web3 is effectively dead, arguing that the broad vision of a decentralised internet built on blockchain applications has failed to materialise. In his view, only two verticals continue to show real traction: decentralised finance (DeFi) and Decentralised Physical Infrastructure Networks (DePIN).</p>
<h2 id="from-evangelist-to-realist">From Evangelist to Realist</h2>
<p>The remarks carry weight given Samani's history as one of the sector's most vocal boosters. <cite>Founded in 2017, Multicoin quickly gained visibility for backing projects like Solana and Helium before they became widely known.</cite> Samani was among the loudest proponents of the Web3 thesis for years, but his view shifted sharply ahead of his departure from the firm. <cite>According to reports, Samani stated: "Cryptocurrency is not as interesting as many people once imagined. I used to believe in the vision of Web3 and in dApps. Now I don't. Blockchain is essentially just an asset ledger. They will reshape finance, but that's about it. DePIN is another noteworthy area."</cite></p>
<p><cite>The venture capitalist did identify one area retaining his interest: DePIN, networks that leverage blockchain tokens to coordinate and incentivise real-world infrastructure deployment, including wireless networks, data storage, and computing resources.</cite><cite>He also retains confidence in financial applications such as stablecoins, DeFi, and RWA.</cite></p>
<p><cite>Samani announced in February 2026 that he is stepping back from his daily leadership role at Multicoin Capital after nearly a decade, with plans to focus on emerging technological frontiers including artificial intelligence, robotics, and longevity technology.</cite><cite>While separating himself from Multicoin, he remains focused on Solana and will continue to serve as Chairman of his Solana treasury company, Forward Industries.</cite></p>
<h2 id="a-broader-identity-crisis">A Broader Identity Crisis</h2>
<p>Samani's comments arrive as other prominent figures also question the direction of the industry. StarkWare CEO Eli Ben-Sasson, <cite>an Israeli computer scientist known for his work on zero-knowledge proofs and co-founder of StarkWare Industries,</cite> has separately raised concerns about crypto's sense of purpose. <cite>In April 2026, Ben-Sasson announced at an all-hands meeting that StarkWare would undergo layoffs and be restructured into two independent business units, focusing on revenue generation and Starknet development.</cite><cite>Facing a shift in identity from a "platform infrastructure company" to a "product-focused technology company," Ben-Sasson admitted the company had become "too big, too inefficient" and that it must return to a startup mode, rapidly iterating with small teams to find product-market fit.</cite></p>
<p>Together, these signals point to a wider recalibration across the crypto industry, one where the sweeping promises of Web3 are being replaced by a narrower, more utility-focused view of what blockchain can actually deliver. <cite>While crypto prices are higher, confidence is lower as the industry grapples with narratives shifting from grand Web3 visions to financial applications.</cite></p>
<p><strong>Sources:</strong><br><a href="https://www.coindesk.com/business/2026/02/04/multicoin-co-founder-kyle-samani-steps-down-after-nearly-a-decade-to-pursue-other-areas-of-tech" rel="noopener noreferrer nofollow">CoinDesk: Kyle Samani Steps Away from Multicoin Capital</a><br><a href="https://thedefiant.io/newsletter/defi-daily/kyle-samani-exits-multicoin" rel="noopener noreferrer nofollow">The Defiant: Kyle Samani Exits Multicoin</a><br><a href="https://www.odaily.news/en/post/5210250" rel="noopener noreferrer nofollow">Odaily: StarkWare Restructures as L2 Sector Faces Market Reckoning</a></p>

WEB3 Is Dead Says Multicoin Cofounder

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