Coinspeaker
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Farcaster Continues Under Neynar, Merkle Returns $180M to Investors

Farcaster's Continuation and Acquisition

  • Farcaster, a decentralized social networking platform, will continue operations after its acquisition by Neynar.
  • Neynar plans to shift Farcaster towards a more developer-focused roadmap.
  • The original development team from Merkle Manufactory will step back from daily operations.

Merkle Manufactory's Financial Decisions

  • Merkle Manufactory intends to return $180 million raised from venture capital investors, including a16z Crypto and Paradigm.
  • Investors confirmed receiving their capital back, emphasizing the functional technology of Farcaster.

Platform Usage and Functionality

  • Farcaster had 250,000 monthly active users in December and over 100,000 funded wallets.
  • The protocol remains operational under Neynar's ownership, serving as backend infrastructure for Farcaster-based applications.

Challenges and Financial Performance

  • Farcaster raised $30 million in 2022 and $150 million in 2024, reaching a near $1 billion valuation.
  • Despite raising $180 million, revenue was only $2.8 million over five years.
  • The acquisition of Clanker, generating over $50 million in fees, did not boost growth significantly.

Future Prospects

  • Farcaster's future depends on the success of a builder-led model after facing challenges as a social network.