Why Invest In Farcaster

⸺ by Charles Iliya Krempeaux

⸺ published 2024-05-08T10:37:27-07:00

I asked a number of people a related question about —

Why did you or why would you have invested in Farcaster?

These are the responses I got —

(And, I am going to keep this pseudonymous.)

OK (who did invest in Farcaster) said:

The reason I invested in farcaster is — the team. There is no better team than dan/varun to do this.

ER (who didn't invest in Farcaster, but did invest in a developer platform that offers services to developers who are building on Farcaster) said:

I didn't invest in farcaster but I wish I had.

№1: they have a strong founding team with a track record of success
,
№2: they are a more crypto native approach to decentralized social than the fediverse / mastodon and bluesky, and

№3: they have a good product experience from day 1.

CEW said:

I am one of the earliest users of farcaster. To me decentralized social concepts need clear financial rails and a portable social graph.

The never resonated with me because of 2 reasons —

№1: the user being at the server admin's mercy felt worse than being at a client's mercy, and

№2: the fact that commerce seemed to be so frowned upon (on the Fediverse) made me see no viable path for small-scale people.

On the investor side, is a massive part of what is driving farcaster fomo (fear-of-missing-out).

The graph is open enough that everyone is building social gambling games of various varieties

Many in crypto believe highly in speculation and attention at all costs. SocialFi is the candy buzz word for all that.

The Fediverse defaults, or at least appears to default, to anti-commerce. That really hurts its perception among tech investors in my opinion.

Also, Dan is incredibly hooked up in investor circles from the start. Many investors act like lemmings.

Everyone uses the phrase “capital is the new labour” now. It is a common phrase I see investors echoing.