Farcaster Raises $150 Million in Funding for Blockchain Social Protocol
Farcaster, a blockchain-driven social protocol founded by former Coinbase executives, recently closed a $150 million fundraising round led by Paradigm.
Other backers include a16z crypto, Haun Ventures, USV, Variant, Standard Crypto, and more, according to founder Dan Romero.
The platform’s flagship app, Warpcast, akin to Twitter, allows developers to build on its infrastructure. Farcaster adopts a hybrid model, storing user identities on-chain while off-chain storage manages public posts, follows, and reactions, with users paying around $7 in ETH for 5,000 posts.
While on-chain actions prioritize security, storing user identities on-chain offers additional verification, albeit not foolproof. Farcaster features individual channels for specific topics to streamline discussions and a Frames feature for developers to showcase their apps on Warpcast.
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Despite innovative architecture, Farcaster faces user adoption challenges due to the necessity of a digital wallet. However, its target audience primarily comprises crypto enthusiasts familiar with Ethereum transactions.
With around 80,000 daily active users and 350,000 signups, Farcaster’s user base is smaller compared to decentralized platforms like Bluesky and Mastodon, which boast millions of signups. Nonetheless, securing a $150 million investment amid declining venture funding for crypto companies underscores Farcaster’s potential within the volatile crypto landscape, supported by crypto-focused firms backing the initiative.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
