VCs and Incubators providing support to such "startups" (I would really not like to call these entities legitimate startups) causes them to look credible to the public in general and that's why so many people get duped. I am honestly skeptical about this whole Web3 thing, and while a connection has really managed to make my opinion a little less extreme, I think most of us agree that this kind of "startups" cause more harm than good