Farcaster announced last month that it has raised $150 million, led by Paradigm, with a valuation of $1 billion. This is the largest investment in Web3 social media to date. One explanation for why the valuation is so high is that cryptocurrency venture capital firms are involved. "If venture capital still has LP capital to invest, they 'invested $150 million' instead of returning it, which means they can charge themselves an additional $20-30 million in management fees," wrote cryptocurrency investor Liron Shapira. A source who requested anonymity due to business constraints said that, like most protocols, they expect Farcaster to launch tokens, and investors will be eager to capture their fully diluted value.

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