Merkle Manufactory’s Valuation Hits $1B Following Paradigm Deal

Based on insider reports, Merkle Manufactory, the organization responsible for Farcaster social media platform, is close to finishing a financing stage, potentially evaluating the company at a billion dollars.

A prominent cryptocurrency investment team, Paradigm, is spearheading the financing for multiple notable crypto initiatives.

Unicorn Status 

Paradigm, known for investing in prominent crypto companies like Coinbase, Blur, Compound, dYdX, and Citadel Securities, is spearheading Merkle Manufactory’s funding round. Notably, Merkle Manufactory is the mastermind behind the popular Farcaster social media platform. The specifics of the funding, however, remain scarce. Dan Romero, a co-founder of Merkle Manufactory and former Coinbase VP, confirmed their fundraising efforts but declined to reveal the amount or valuation. Paradigm has yet to respond for comment on this development.

“Wanted to let everyone know that Merkle Manufactory is closing a new round of financing. Will share more details soon.”

Merkle had previously raised money in a $30 million funding round led by a16z crypto in July 2022. 

Farcaster’s Jump In Popularity 

Merkle’s Farcaster has experienced a notable surge in usage and interest since Warpcast launched Frames. This new feature enables users to operate applications right within posts without having to leave the platform. With Frames, individuals can create non-fungible tokens (NFTs), execute transactions, view external blog entries, and complete surveys – all conveniently inside the app.

After implementing Frames, user engagement saw a substantial surge. As reported by Dune Analytics, the active user count on Farcaster’s network jumped from around 5,000 on January 28th to over 249,000 on March 30th.

The Rise Of Decentralized Social Media Platforms

Deccentralized social media networks represent a fresh category of platforms that leverage blockchain technology to enable users to retain full control over their data, interactions, and consent. By doing so, they distinguish themselves from conventional social media platforms and apps, which are characterized by centralization. Key attributes of decentralized social media include resistance to censorship and the ability for content creators to monetize their work directly, without intermediaries. Notable examples of these platforms include Friend.tech, Minds, Mastodon, and Merkle’s Farcaster.

In 2020, Merkle was established by ex-Coinbase team members Romero and Varun Srinivasan. Their main offering is Warpcast, an social media platform developed on the decentralized Farcaster network. As Romero explained, Farcaster’s founding principle is that no individual has dominion over it. He further stated that these conditions reflect the stable state for the future global public discourse arena.

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2024-04-02 11:02