Farcaster co-founder Dan Romero addressed rumors circulating about the decentralized social protocol's future following its acquisition by Neynar, confirming the platform is not shutting down and that Merkle Manufactory plans to return the full $180 million raised to investors.
What Happened: Romero Clarifies Post-Acquisition Status
Romero took to social media to dispel speculation about Farcaster's viability after the recently announced sale. He stated that the protocol works and will continue to operate under new ownership.
The platform recorded 250,000 monthly active users in December and maintains over 100,000 funded wallets.
Neynar, a venture-backed startup, intends to shift the protocol in a more developer-focused direction.
"After five years, it's clear Farcaster needs a new approach and leadership to reach its full potential," Romero said.
He also clarified that he purchased his house with Coinbase IPO proceeds, not company funds.
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Why It Matters: Infrastructure Acquires Protocol
Industry observers described the transaction as a significant development for decentralized social networks. One analyst called it "infrastructure acquiring the application and protocol layer," a structure he said was unexpected.
Developers familiar with the ecosystem noted that Neynar has served as the de facto backend for much of what is built on Farcaster. "This is one of the few teams I trust," one developer wrote.
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