Farcaster Parent Company Valued at Over $1 Billion in Paradigm-Led Funding Round

Merkle Manufactory, the company behind the decentralized social network Farcaster, is on the verge of reaching a valuation of $1 billion in its latest funding round. Leading the funding round is crypto investment firm Paradigm, known for its investments in major cryptocurrency companies like Coinbase, Blur, dYdX, Compound, and Citadel Securities¹.

Founded in 2020 by former Coinbase executives Dan Romero and Varun Srinivasan, Merkle Manufactory is best known for its flagship social media application called Warpcast. This application operates on the decentralized network for social media apps known as Farcaster. Dan Romero confirmed the ongoing capital raise in a post on March 28. However, Paradigm has not officially confirmed its participation in the funding round. Merkle previously raised $30 million in July 2022 from venture capital firm A16z Crypto.

Farcaster’s Surge in User Activity

Farcaster has experienced a significant surge in user activity since January, following the introduction of Frames, a feature that allows apps to run within posts without leaving the platform. Frames enable users to perform various actions such as minting nonfungible tokens (NFTs), conducting transactions, accessing external blog posts, and participating in surveys directly within the app. As a result, user engagement has skyrocketed. According to data from Dune Analytics, the number of daily active users on the Farcaster network surged from around 5,000 on January 28 to over 249,000 on March 30.

Decentralized Social Media Platforms

Decentralized social media platforms represent a new breed of networks that leverage blockchain technology to offer users ownership over their data, content, and interactions. These platforms aim to move away from the centralized control typically associated with traditional social media. Key features of decentralized social media platforms include censorship resistance and the ability to monetize content without intermediaries. Other popular platforms in this sector include Friend.tech, Minds, and Mastodon. However, industry executives note that user retention remains one of the greatest challenges for decentralized social media platforms.

Merkle Manufactory’s valuation milestone and Farcaster’s growing user base underscore the increasing interest in decentralized social media networks. As the crypto landscape continues to evolve, platforms like Farcaster are reshaping how we interact online, emphasizing user empowerment and privacy. The future of social media may well be decentralized, and Farcaster is at the forefront of this transformative shift.