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Jack Dorsey and venture capitalists clash over the future of cryptocurrency.

Twitter’s cryptocurrency community presents a mostly united front in the face of all challenges. But Jack Dorsey, a founder of Twitter and Square and a Bitcoin evangelist, has just exposed a deep internal divide over the direction of crypto and has opposed some of the industry’s richest backers, reports the DealBook newsletter.

The fight is over Web3, the industry name for a blockchain-based internet that runs on crypto tokens. Supporters say it will democratize and decentralize commerce, finance, gaming and more. Corn Mr. Dorsey warned that Web3 actually belonged to venture capitalists who invest billions in crypto companies: “That will never escape their incentives,” he tweeted.

Others echo Mr. Dorsey’s concerns. Charles Hoskinson, who co-founded the Ethereum platform, told DealBook that strong involvement in a seemingly decentralized ecosystem is problematic, as they have ways of potentially gaining inordinate control over projects. Elon musk insolently tweeted: “Has anyone seen web3? I can’t find it” – to which Mr. Dorsey responded, “It’s somewhere between a and z,” an apparent dig by venture capital firm Andreessen Horowitz, widely known in Silicon Valley as A16Z.

Andreessen has promoted Web3 heavily in recent months and has invested billions in related projects such as Decentralized Autonomous Organizations or DAOs. These entities are governed by users who vote with tokens. A16Z has argued in political discussions with government officials and the media that DAOs are an update on the “run down” stock company.

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