Farcaster’s co-founder, Dan Romero, has firmly rejected rumors circulating about the potential shutdown of the decentralized social protocol following its recent acquisition by Neynar. On January 22, 2024, Romero emphasized that Farcaster is not closing down and is instead committed to returning the full $180 million raised from investors over the past five years.
Romero’s comments came after a wave of speculation on social media, particularly on X (formerly Twitter), where critics suggested that the Neynar acquisition was a sign of an impending wind-down of the project. Supporters, however, framed the deal as a strategic move to ensure the protocol’s continued operation and a responsible return of capital to investors.
Farcaster reported approximately 250,000 monthly active users as of December 2023 and over 100,000 funded wallets. Romero stated, “The protocol works and will continue to work,” reinforcing confidence in its future. Following the acquisition, ownership of various assets, including code repositories and the Farcaster app, will transition to Neynar in the coming weeks.
Romero addressed the controversy surrounding the refund plan, describing it as part of prudent capital management. He countered personal criticisms regarding his financial motivations, clarifying that he purchased his home using proceeds from Coinbase’s initial public offering, not from Farcaster funds. Romero labeled the shutdown claims as “complete bullshit” and reiterated the original vision of creating a permissionless social network that empowers users to control their data.
Adding to the conversation, Balaji Srinivasan, a prominent figure in the cryptocurrency space, confirmed the return of funds to investors, highlighting that Romero was financially independent prior to founding Farcaster. Despite these reassurances, skepticism remains within parts of the community. Some question how a company that recently raised $150 million in a funding round led by Paradigm could sell to a firm that reportedly raised a lesser amount.
Critics, including developer LogicCrafterDz, attributed Farcaster’s challenges to leadership issues and a lack of community involvement. They argue that Neynar’s takeover will only succeed if governance and incentives are more transparent. Others, like investor Linda Xie, who worked alongside Romero at Coinbase, dismissed the criticisms as inaccurate and expressed willingness to collaborate with him again.
The current discourse reflects a divided crypto audience. Some view the refund initiative and transfer of ownership as a well-managed outcome, while others see it as a costly experiment that did not meet its ambitious expectations. As the situation develops, the future of Farcaster remains a focal point of discussion among cryptocurrency enthusiasts and investors alike.
