Farcaster, the up-and-coming blockchain competitor to social media giant X, is rumored to be considering launching its own unique token.

Operating on the Ethereum (ETH) blockchain, Farcaster is a decentralized social networking platform that enables users to build profiles, share content known as “casts,” and connect with others. Additionally, the platform allows users to securely store their information on the blockchain and display their non-fungible tokens (NFTs).

Despite having only 50,000 daily average users, Farcaster managed to secure $150 million in funding last month, valuing the platform at $1 billion. This investment marks the largest in the realm of web3 social media thus far.

According to a confidential source cited by Fortune, investor interest in Farcaster may be fueled by the potential launch of a token by the crypto project. The source stated, “Like most protocols, he expects that Farcaster will launch a token, and investors will be eager to capture its full value, regardless of liquidity. Venture capitalists are eager to deploy excess capital swiftly to showcase impressive returns, with tokens providing a means to achieve this goal.”

Farcaster has received backing from prominent firms like Paradigm, a16z crypto, Haun Ventures, USV, Variant, and Standard Crypto in its series A funding round. Co-founded by Dan Romero, a former executive at Coinbase, Farcaster is focusing on expanding its daily active user base this year.

Romero shared, “Since becoming permissionless in October, Farcaster has witnessed 350,000 paid sign-ups and a 50x surge in network activity. Numerous developers are working on the protocol, alongside a growing array of applications and frameworks for users to explore.”

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