Paradigm's Investment Propels Merkle into Unicorn Territory In Crypto Social Media Space

A startup manufacturing firm is poised to achieve a pivotal milestone: a valuation surpassing the billion-dollar mark. This forthcoming investment round for Merkle Manufactory, the creators of the Farcaster social network, will drive the organization into the best echelon, according to Bloomberg.

Paradigm, a crypto investment firm, leads the pack. They’ve invested in big crypto names like Coinbase, Blur, dYdX, Compound, and Citadel Securities.

Dan Romero and Varun Srinivasan started Merkle in 2020 after working at Coinbase. Their big thing is a social media app called Warpcast, which runs on the Farcaster network, a decentralized network for social media.

Romero said on Mar 28 that Merkle was getting money. “I wanna tell y’all that Merkle Manufactory is getting more money.” Paradigm hasn’t said if it’s giving money. Merkle got $30 million from A16z Crypto in July 2022.

Since January, more folks have been using Farcaster a lot. That’s because of Frames, which Warpcast introduced. Frames let you do all sorts of things without leaving the platform. However, You can make NFTs, buy stuff, read blog posts, and even answer surveys in the app. It’s like having a bunch of little apps inside the main one.

Crypto Boosts Decentralized Social Media

The update got people more involved. On Jan 28, about 5,000 folks used the Farcaster network daily. But by Mar 30, that number shot up to over 249,000, according to Dune Analytics.

**Farcaster’s daily active users. Source: Dune Analytics**

Decentralized social media platforms are like new types of networks. They use blockchain tech to give users control over their stuff—data, posts, and chats. This is different from regular social media, where everything’s controlled by one big center.

These platforms allow you to say what you want without getting blocked and make money from your posts without any middlemen. However, The big ones you might have heard of are Friends. Tech, Minds, and Mastodon. Two people in this industry say one of the hardest things for these social media sites is keeping people interested and sticking around.

The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.