Merkle Manufactory, the mastermind behind the Farcaster network, is reportedly close to securing a significant funding round that values the company at around $1 billion.
This development, initially reported by Bloomberg, marks a major milestone for the Los Angeles-based company.
Founded in 2020 by former Coinbase executives Dan Romero and Varun Srinivasan, Merkle Manufactory is now positioned to achieve unicorn status as it continues to make waves in the decentralized social media sphere.
According to sources familiar with the matter as cited by Bloomberg, crypto investment firm Paradigm is spearheading the investment.
Merkle Manufactory is known for two flagship products: the Farcaster protocol, which integrates with blockchain technology, and Warpcast, a social app akin to X. The Farcaster social media platform has been gaining momentum in recent months.
The company last raised funds in July 2022, securing $30 million in a round led by a16z Crypto. Dan Romero, one of the co-founders and a former vice president at Coinbase, confirmed the ongoing funding round in a Warpcast post on March 29.
In the post, he announced, “I wanted to let everyone know that Merkle Manufactory is closing a new round of financing,” although he didn’t disclose the exact amount.
In a recent podcast, Romero underscored Farcaster’s fundamental principle of decentralization, highlighting how the platform’s design aims to prevent any single entity from exerting control.
He also emphasized the introduction of Frames, a new feature within the Farcaster ecosystem that enhances interactivity and functionality, catering to a growing user base.
The introduction of Frames led to significant growth for Farcaster, with daily active users surging to over 50,000 in early February, a substantial increase from previous months. This surge underscores the platform’s appeal and potential in the competitive landscape of decentralized social media.
The news of Farcaster’s newfound valuation has been well received within its community.
According to DappRadar, in the last 24 hours, the number of unique active addresses interacting with Farcaster has increased by a remarkable 77%, with nearly 9,000 transactions worth more than $24,000 carried out among them.
However, over the past 30 days, the picture hasn’t been as positive, with the number of users interacting with Farcaster decreasing by over 63%.
Additionally, the total number of transactions between wallets dropped by nearly 60% during that time, reflecting a similar percentage drop in Farcaster’s transaction volumes, which amounted to about $145,000.
