Farcaster, the blockchain-based challenger of social media platform X, reportedly may introduce its own token.
The Ethereum (ETH)-based decentralized social network Farcaster allows users to create profiles, make posts called “casts” and follow others.
The platform also gives users the ability to store their data on-chain and showcase their non-fungible tokens (NFTs).
According to Fortune, Farcaster raised $150 million in funding last month with a $1 billion valuation despite a daily average user base of just 50,000. The investment is by far the largest in web3 social media to date.
Citing a source who wished to remain anonymous, Fortune says investor interest in Farcaster may be driven by the prospect that the crypto project may launch a token in the future.
“One source, who requested anonymity due to the constraints of his business, told me that, like most protocols, he expects that Farcaster will launch a token, and investors will be keen to capture the fully diluted value of it—regardless of whether there is liquidity.
In lieu of perpetually eyeing their next fund, VCs want to deploy surplus capital fast in order to generate seemingly impressive returns, and tokens offer an avenue to tout this.”
Farcaster has secured investments from firms such as Paradigm, a16z crypto, Haun Ventures, USV, Variant and Standard Crypto in its series A funding round.
Farcaster co-founder and former Coinbase executive Dan Romero says the network is focusing on growing its daily active users this year.
‘Since going permissionless last October, Farcaster has seen 350,000 paid sign-ups and a 50x increase in network activity. There are hundreds of developers building on the protocol and a growing number of apps and frames for people to use.”
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Featured Image: Shutterstock/dubassy/Natalia Siiatovskaia
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