Ex-Coinbase Execs' Social Media Startup Approaches $1 Billion Valuation

Merkle Manufactory, founded by two former Coinbase executives, is nearing the completion of a funding round that would value the company at around $1 billion. Sources familiar with the situation disclosed that crypto investment firm Paradigm is leading the investment in the Los Angeles-based company.

Notably, Merkle Manufactory is the driving force behind the infrastructure of the Farcaster social media network. Dan Romero, a co-founder of Merkle and a former vice president at Coinbase, confirmed in a social media post on March 29 that the startup is currently in the process of raising funds. However, he refrained from providing specific details about the amount.

In a post on Warpcast, the Farcaster app developed by Merkle, Romero stated, "I wanted to let everyone know that Merkle Manufactory is closing a new round of financing. I will share more details soon."

Merkle was established in 2020 by Romero alongside Varun Srinivasan, a former senior director at Coinbase. The company's vision is to create a decentralized public square free from centralized control. Merkle offers two main products: the Farcaster protocol, which is integrated with a blockchain component, and Warpcast, an application built on top of Farcaster that resembles X, the social media platform previously known as Twitter.

In July 2022, Merkle raised $30 million in funding in a round led by a16z Crypto, marking its most recent capital raise. During a recent podcast, Romero highlighted Farcaster's core philosophy, which revolves around a protocol free from singular control by any individual, entity, or nation. He emphasized that such conditions represent the enduring equilibrium for the global public square.

Data indicates that Farcaster's daily active users surged to over 50,000 in early February from fewer than 10,000 the previous month.

In January, the Farcaster ecosystem introduced Frames, a new feature that enables developers to seamlessly integrate external app functionalities within Warpcast without disrupting the user experience.