Elon Musk Believes Web 3.0 'Sounds Like BS'

Elon Musk — billionaire tech tycoon and CEO of electric vehicle manufacturer Tesla Inc. TSLA — suggested that there may not be much to Web 3.0, a concept much-acclaimed in the cryptocurrency community.

What Happened: In a Thursday tweet, Musk wrote that, "Web3 sounds like bs" as an answer to a market forecast thread by President of Y Combinator and OpenAI co-founder Sam Altman.

The stance is especially surprising when considering the fact that his brother Kimbal Musk launched an autonomous decentralized organization (DAO) aimed at philanthropy earlier this week — which is arguably a Web 3.0 project — and talked highly of the Web 3.0. industry

In the thread Musk answered to, Altman wrote that he expects the average venture returns for investments in the 2020s to be even worse than those from the 2010s because of a flood of capital. He has gone as far as to say that he has "never heard so many price-setting [Venture Capital firms] openly say they're willing to accept much lower return targets."

See Also: Enigmatic Messenger Or Troll: Is Elon Musk Alluding To This Date For Another Tesla Stock Split?

Why It's Important: Web 3.0 is an umbrella term for everything that is involved in the next generation of the world wide web ecosystem. The first generation was mostly static content, the second generation allowed users to add content as well.

Now many are suggesting web 3.0 will be distributed both in control — through a new breed of organizations such as DAOs — and infrastructure at least in part thanks to blockchain technology leveraged for decentralized hosting and data distribution.

Despite that mostly bearish prediction, Altman wrote that he expects Web 3.0 to possibly still have "2010s-like returns" but he expects most venture capital firms to miss it. Musk apparently doesn't agree with this statement.