WEB3 Is Dead Says Multicoin Cofounder

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).

From Evangelist to Realist

The remarks carry weight given Samani's history as one of the sector's most vocal boosters. Founded in 2017, Multicoin quickly gained visibility for backing projects like Solana and Helium before they became widely known. Samani was among the loudest proponents of the Web3 thesis for years, but his view shifted sharply ahead of his departure from the firm. 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."

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. He also retains confidence in financial applications such as stablecoins, DeFi, and RWA.

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. While separating himself from Multicoin, he remains focused on Solana and will continue to serve as Chairman of his Solana treasury company, Forward Industries.

A Broader Identity Crisis

Samani's comments arrive as other prominent figures also question the direction of the industry. StarkWare CEO Eli Ben-Sasson, an Israeli computer scientist known for his work on zero-knowledge proofs and co-founder of StarkWare Industries, has separately raised concerns about crypto's sense of purpose. 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. 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.

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. While crypto prices are higher, confidence is lower as the industry grapples with narratives shifting from grand Web3 visions to financial applications.

Sources:
CoinDesk: Kyle Samani Steps Away from Multicoin Capital
The Defiant: Kyle Samani Exits Multicoin
Odaily: StarkWare Restructures as L2 Sector Faces Market Reckoning