Farcaster, the blockchain-based rival of social media giant X, is rumored to be considering the launch of its own token.
Operating on the Ethereum (ETH) blockchain, Farcaster is a decentralized social networking platform that enables users to create profiles, share “casts,” and connect with other users.
Additionally, the platform allows users to store their data securely on-chain and exhibit their non-fungible tokens (NFTs).
Despite having a modest daily user base of 50,000, Farcaster recently secured a remarkable $150 million in funding with a valuation of $1 billion, making it the largest investment in web3 social media thus far, as reported by Fortune.
An anonymous source revealed to Fortune that investor interest in Farcaster may be fueled by the possibility of the platform launching its own token in the future.
The source stated, “Like most protocols, I anticipate that Farcaster will introduce a token, and investors will be eager to capture its full value, regardless of liquidity. Venture capitalists are keen on deploying surplus capital rapidly to yield impressive returns, and tokens provide an avenue for achieving this.”
In its series A funding round, Farcaster has received investments from prominent firms such as Paradigm, a16z crypto, Haun Ventures, USV, Variant, and Standard Crypto.
Dan Romero, co-founder of Farcaster and former executive at Coinbase, expressed the network’s focus on expanding its daily active user base this year.
Romero stated, “Since transitioning to a permissionless model last October, Farcaster has seen 350,000 paid sign-ups and a 50x surge in network activity. Numerous developers are actively building on the protocol, and there is a growing array of applications and features available for users.”
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