Farcaster developer Merkle is planning to raise around $1 billion, according to a report by Bloomberg. The funding is likely to give the firm a unicorn status and also highlights a changing dynamic in the dysphoria of the crypto-related social media realm.
Merkle to Raise $1 Billion
Bloomberg on Saturday reported, that Merkle, a software developer for decentralized social networks that was established by two former executives of Coinbase Global Inc. is almost done with a funding round that would value the company at roughly $1 billion.
According to insiders who asked to remain anonymous because the specifics of the deal have not been disclosed, Paradigm, a cryptocurrency investment group, is spearheading the investment in Los Angeles-based Merkle Manufactory, whose software powers the Farcaster social media network.
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Merkle’s Two Major Products
Merkle was formed in 2020 and offers two primary products: Warpcast, an app that is built on top of Farcaster and bears a striking resemblance to X, the social media network that was once known as Twitter, and the Farcaster protocol, which incorporates a blockchain component. Alongside former Coinbase senior director Varun Srinivasan, Romero co-founded the company.
In July 2022, Merkle completed a $30 million funding round headed by a16z Crypto.
Farcaster Gains Market Acceptance
Following a recent update that attracted thousands of new users, Farcaster, a decentralized social media protocol, has gained significant attention. Its main software, Warpcast, is one of the decentralized social media networks made possible by the Farcaster social media protocol.
Farcaster, developed in 2020 by Coinbase seasoned developers Dan Romero and Varun Srinivasan, is built on the Ethereum scaling network Optimism. Prominent figures in the cryptocurrency space, such as Ethereum co-founder Vitalik Buterin and core developer Tim Beiko, have praised the site for offering an open and uncensored online social experience.
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