Crypto Billionaires Warn California: ‘Billionaire Tax’ Risks Web3 Exodus

Crypto founders and Web3 investors are sounding the alarm: California’s new “billionaire tax” could drive a fresh stampede of talent and money right out of the state, this time from the blockchain crowd. And honestly, it’s not just the higher tax bills that have people worried it’s the unpredictability. These builders can operate from anywhere, so if they sense chaos around wealth or unrealized-gains taxes, they’ll pack up and go. No hesitation.

California has always been the epicenter of tech, but Web3 companies aren’t like the old-school startups. They’re decentralized, remote, and don’t need fancy offices or big overhead. That means they can move in a heartbeat. If lawmakers send signals that future taxes could hit founders for paper profits or token holdings, you can bet those teams and their treasuries will disappear to friendlier places.

Some critics warn the state’s about to hollow out its next wave of tech growth. Investors, developers, the whole ecosystem they’ll just head to Texas, Florida, or even Asia and the Middle East if it looks safer. Once momentum leaves, good luck getting it back.

Supporters of the tax say California needs the cash and the wealthy should pay more. But crypto leaders say the state risks losing way more in innovation than it ever collects in taxes. The message couldn’t be clearer: if lawmakers don’t get this right, Web3 builders will walk. And in a world built on borderless tech, leaving California is easier than ever.