ChainCatcher reported that according to Fortune magazine, Farcaster announced last month that it had raised $150 million, led by Paradigm. With its $1 billion valuation, this is the largest investment in Web3 social media to date.

One explanation for why valuations are so high is that cryptocurrency venture capital firms are involved.

“If the VCs still had LP capital to put to work and they ‘put in $150M’ instead of giving it back, that means they could have collected an additional $20-30M in management fees for themselves,” crypto investor Liron Shapira wrote.

One source, who requested anonymity due to business constraints, said he expects Farcaster, like most protocols, to launch a token and investors will be eager to capture its fully diluted value.