# Farcaster has 5000 DAU. How could it raise 150 million?

Source: https://x.com/liron/status/1793687842948022714
Kiwi News: https://news.kiwistand.com/stories/Farcaster-has-5000-DAU-How-could-it-raise-150-million?index=0x6655c6608164f5ecf4ce5d596d83505445f7fbcc5f69c2828fb3d9058c00d797ebb21a7e
Submitted by qiaoliang.eth on 2024-05-28 UTC, 17 upvotes, 7 comments

🤔 How did Farcaster, a small crypto/Web3 version of Twitter, just raise $150M at a $1B valuation? 

Dune Analytics says they have 45k daily active users, which is microscopic.

But even that number is MASSIVELY inflated by spambots.

How & why I think @a16z is siphoning money 🧵

## Comments

**macbudkowski.eth**: Funnily enough, I connected with Dan Romero for the first time when this guy dunked on Farcaster after their 2022 fundraise. He claimed that they raised too much, and I pointed out that protocol-centric projects are valued differently.

Anyway, the discussion under the thread is interesting.




**qiaoliang.eth**: hahah no wonder. If 30mil is too much, 150mil must have blown his mind. I don't like his observation about Farcaster's resemblance to Discord tho.

But Farcaster's DAU is more valuable because they are wallets, not just eyeballs

**macbudkowski.eth**: Haha, yeah. Funnily enough Liron raised $170M for his first startup that eventually failed.

Re Farcaster DAU, I guess it's all about some kind of fee switch narrative. E.g., if WC gets to 1M users and takes 1% of each Frame TX - on top of storage and channel fees - they might make a lot of money.

**depatchedmode.eth**: I'm not sure how much faith I should put in the opinion of someone who, when you actually dig into the numbers, only has around 300 legitimate followers.

**@garesbil9**: The current projects are all popular with high valuations.

**tim**: But to be real though, he was cooking with this tweet, wasn‘t he? 

Who actually knows how the VCs justify the evaluation of 200k USD per user? 

At Berlin Blockchain Week a majority of the people I spoke to were surprised by the amount of money raised and everyone admits that there are a lot of bots.
You simply cannot justify any of this with a „heavy lifting“ argument like „oh but it‘s crypto“ or „oh it‘s a protocol.“

Yet, if they, let‘s say launched a token, then, of course, this money could easy be earned back hehe 

**svj.eth**: Let’s just be happy that someone can cook something nice for all of us with all there moneyz.