Farcaster Raises $150 Million, DEGEN Token Soars 17%: Platform Targets Long-Term Growth
Summary:
Farcaster's community-generated token DEGEN surged by 17% after the blockchain-based social platform announced a $150 million fundraising round led by Paradigm, Andreessen Horowitz, Haun, USV, Variant, and Standard Crypto. Founder Dan Romero announced the funds will be used for the long term development of the Farcaster. DEGEN, initially introduced as a community memecoin intended as a reward system, has grown in popularity, leading to the creation of a new layer-3 blockchain, the DEGEN chain.
The community-generated token of Farcaster, Degen (DEGEN), experienced a 17% surge following the social platform's disclosure that it raised $150 million in their latest round of funding. The venture firm Paradigm spearheaded this Series A round, and Andreessen Horowitz, Haun, USV, Variant and Standard Crypto also participated. On May 21, Farcaster's founder Dan Romero revealed in a post that these funds will aid the Farcaster platform in their long-term endeavors. Romero, an ex-executive at Coinbase, initially hinted at the funding round on Warpcast in March, though no detailed revelations followed. According to a March report by Bloomberg, this funding would elevate the valuation of Merkle Manufactory, the corporation overseeing social network Farcaster, to an estimated $1 billion.
"Farcaster is a burgeoning protocol, expanding swiftly," commented Jesse Walden, the co-founder and general partner of the Variant Fund in his statement on May 21. Along the same lines, Romero contended that the capital raised would enable the Farcaster protocol to draw more users. Since October, he disclosed, Farcaster had seen "350,000 paid sign-ups and a 50-fold boost in network activity".
Moving forward, Romero added that the platform will prioritize the expansion of daily active users and the addition of "developer primitives", such as channels and direct messaging functionalities, to the Farcaster protocol. DEGEN, a token originating from Farcaster's community and not officially tied to the protocol, erupted by 17% following the news, presently priced at $0.023 as per CoinMarketCap.
In January, frequent visitor to a Farcaster Degen channel, Jacek Trociński, initiated DEGEN as a community meme coin. It was initially disbursed to the users as a reward for providing quality content or interacting with posts. The token subsequently grew in popularity, prompting Trociński to establish a layer-3 blockchain specializing in meme coins on Base, named the DEGEN chain. This new chain utilizes the Degen token as its primary gas token.
Published At
5/22/2024 7:10:17 AM
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