Farcaster co-founder Dan Romero has dismissed rumors about the project’s potential shutdown. In his latest post on X, Romero clarified that the decentralized social protocol currently works and plans to remain that way amid recent changes in ownership and administration.
Meanwhile, Romero noted that Farcaster had 250,000 monthly active users (MAU) last December, alongside over 100,000 funded wallets. He disclosed that the latest owner of the project, Neynar, is a venture-backed startup and plans to shift Farcaster toward a more developer-focused direction. Romero further stated that Merkle Manufactory, the original developer behind Farcaster, is planning to return the full $180 million it raised back to investors.
In the meantime, Romero used the opportunity to debunk the rumor making the rounds, with many social media users accusing him of exploiting Farcaster investors and using the earned proceeds to purchase a house. He clarified that he bought his house with the money he made from the Coinbase IPO at the time he worked for the cryptocurrency exchange.
For context, a recent deal involves a takeover in which Markle Manufactory will transfer Farcaster’s contracts, code, app, and Clanker to Neynar in the coming weeks. This comes after a $1 billion Series A funding exercise that saw the former raise $180 million, which it has decided to return to investors, as mentioned earlier.
Many crypto community members have expressed their discomfort with the evolving events around the decentralized social platform, with some critics accusing Romero of orchestrating a deliberate scam to steal $150 million from investors, an accusation he has vehemently debunked.
(adsbygoogle = window.adsbygoogle || []).push({});Dan Romero and Varun Srinivasan launched Farcaster in 2020 after the former left Coinbase. The decentralized social protocol evolved over the years, both in technical restructuring and funding. However, things changed for the worse after the project failed to meet its target in 2025, leading to a significant drop in the number of users and revenue.
Notably, several efforts to improve the network did not work out as planned until the latest announcement of a project takeover following Neynar’s acquisition. Many crypto users are observing developments around the decentralized social project to understand the actual state of affairs.
Related: Farcaster Shifts From Social First Ambition To Wallet First Growth Plan
