Web3 Social Media Platform Farcaster Seeks Funding Round
As daily activity on Farcaster, the breakout Web3 social media service, rockets higher and higher, its developers are reportedly seeking fresh capital.
Developers Nearing Completion of Funding Round
Merkle Manufactory, the Web3 social media firm behind the Farcaster social network and its Warpcast client, is nearing completion of a funding round led by crypto VC Paradigm. The funding round would grant the company unicorn status with a valuation of over $1 billion, according to a report in Bloomberg.
Farcaster Overview
- Farcaster runs on Ethereum and OP Mainnet
- Farcaster operates on a system of peer-to-peer servers called Hubs
- Tens of thousands of users, including high-profile figures in the world of crypto, are using Farcaster
Farcasterโs Growing Popularity
Vitalik Buterin, the founder of Ethereum, has been active on the network, praising it as โbetter in many waysโ than others. Daily posts, known as casts, and reactions on Farcaster have almost doubled in the past week, reaching all-time highs. This surge in activity follows a peak in daily active users in early February, aligning with the introduction of the Frames feature.
Comparing Farcaster to FriendTech
While Farcaster is experiencing increased daily activity compared to its competitor, FriendTech, FriendTech has proven to be more profitable. Developers of FriendTech have generated over $28 million in cumulative fees since its launch, significantly more than Farcasterโs $850,000 in revenue.
About Warpcast and Merkle Manufactory
- Warpcast, the most popular client for Farcaster, is developed by Merkle Manufactory
- As a decentralized service, other competing clients exist to interact with the Farcaster protocol
- Merkle Manufactory was founded by former Coinbase executives Dan Romero and Varun Srinivasan
Fresh Capital for Farcaster
Merkle Manufactory last raised $30 million in July 2022, in a round led by a16z crypto. Now, the company is in the final stages of securing a funding round with Paradigm that would catapult Farcaster to unicorn status. The funding would value the company at over $1 billion, showcasing the immense potential and growth of the Web3 social media platform.
Hot Take: Farcasterโs Ascending Trajectory
With an uptick in daily activity and a looming funding round leading to unicorn status, Farcaster is positioned on an upward trajectory in the Web3 social media landscape. The platformโs growing user base, high-profile endorsements, and increasing revenue potential signal a promising future for Farcaster in the crypto ecosystem. As developments continue to unfold, Farcaster remains a platform to watch for its innovative approach to decentralized social networking.
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