Farcaster, a community-driven blockchain-based social platform, recently secured $150 million in its latest funding round. This Series A round, led by Paradigm and supported by Andreessen Horowitz, Haun, USV, Variant, and Standard Crypto, has significantly bolstered the platform’s growth. Following the announcement by Farcaster’s founder, Dan Romero, on May 21, the Degen token saw a 17% increase. Romero stated that the funds would ensure the continued development of Farcaster for many years.
Major Developments for Farcaster
Romero, a former Coinbase executive, initially hinted at this funding round in March on Warpcast. At that time, Bloomberg reported that this funding would raise the valuation of Merkle Manufactory, the company behind Farcaster, to $1 billion. Jesse Walden, co-founder of Variant Fund, described Farcaster as a rapidly growing protocol. The recent funding will help attract more users and enhance the platform’s capabilities.
Since October, Farcaster has achieved 350,000 paid registrations and a 50-fold increase in network activity. Romero emphasized that the platform’s focus would now shift towards increasing daily active users and adding new features like channels and direct messaging.
Impact on DEGEN Token
The news of the funding round positively impacted DEGEN, Farcaster’s unofficial token, which saw a 17% increase, now trading at $0.023 according to CoinMarketCap. DEGEN, launched by community member Jacek Trocinski in January, was initially distributed through airdrops to users who actively contributed to the platform. The token’s popularity has led to the creation of DEGEN Chain, a Layer-3 blockchain network where DEGEN serves as the native transaction fee token. This network has garnered significant investor interest and a growing user base, highlighting the expanding influence of the Farcaster ecosystem.
