Merkle Manufactory, a developer of software for decentralized social networks, is nearing completion of a funding round that could value the company at roughly $1 billion, according to sources with knowledge of the situation.
Paradigm, a cryptocurrency investment group, is spearheading the investment in Los Angeles-based Merkle Manufactory, whose software powers the Farcaster social media network. Details of the deal have not been officially disclosed.
In a social media post on March 29, Dan Romero, a co-founder of Merkle and a former vice president at Coinbase, confirmed that the startup is seeking money, though he did not specify how much. When questioned about the valuation by Bloomberg, Romero declined to comment further. Paradigm chooses not to respond.
“Wanted to let everyone know that Merkle Manufactory is closing a new round of financing,” he wrote on Warpcast, the Farcaster app that Merkle created. “Will share more details soon.”
Founded in 2020, Merkle’s primary offerings are the blockchain-based Farcaster protocol and Warpcast. This app is built on top of Farcaster and bears a striking resemblance to X, the social media platform that was formerly known as Twitter.
Romero and Varun Srinivasan, a former senior director at Coinbase, co-founded the company. The last time Merkle raised money was in a $30 million round headed by a16z Crypto in July 2022.
Romero stated that the “fundamental premise for Farcaster is a protocol that no one individual, company, or country controls” in a recent Blockworks podcast, going on to say that these circumstances represent “the long-term equilibrium state for the global public square.”
In January, Farcaster introduced Frames, a feature that lets developers showcase external app features within Warpcast. They’ve used it for NFT minting, chess, and surveys. Farcaster’s daily active users surged to over 50,000 in early February, up from under 10,000 the previous month.
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