Crypto Social Protocol Farcaster Founder Faces Allegations Over LA Property Purchase – But Never Went $FAR With A Token

A social media protocol built on Ethereum is under fire from investors and the crypto community after its owner raised $180 million, now at the centre of claims over how the capital was used.

• Injective Lab Head of Business Mirza said Farcaster never launched its long-anticipated “FAR” token, despite years of speculation.
• Farcaster co-founder Dan Romero said the protocol is not shutting down and will transition to new leadership under Neynar.
• Investors defended Romero, saying investor capital would be returned and disputing claims that Farcaster funds were used for personal purchases.

Farcaster, once a promising crypto social platform, is under scrutiny after raising roughly $180 million without issuing its widely expected token. And now, slowing growth and allegations around the founder's spending have highlighted growing investor sensitivity to governance, transparency, and capital use in Web3. 

On X, Injective Lab Head of Business, Mirza, alleged on Wednesday that Farcaster never launched its long-anticipated “FAR” token, despite repeated speculation that a native token would eventually be issued.

The post contrasted that outcome with reports that Dan Romero, the Farcaster founder, had purchased luxury properties in Los Angeles. This fuelled online backlash over priorities and accountability. Mirza said that “venture capital was converted into lifestyle prestige,” allegedly with investor money.

Farcaster’s Pivot After Slowing Growth

Farcaster, a decentralised social media protocol built on Ethereum (ETH) blockchain’s Optimism network, positioned as an alternative to centralized platforms, gained rapid attention during the 2021-2022 crypto bull cycle. However, growth slowed over time, and the protocol reached about 250,000 monthly active users by the end of last year. 

On Tuesday, Romero announced that Farcaster’s founding team, including himself and Varun Srinivasan, would be stepping down from day-to-day operations at the company. 

The $FAR Token That Never Launched

A central point of criticism in Mirza's argument was the absence of a Farcaster token ($FAR), despite years of speculation in the crypto community that it would launch soon. Mirza argued that token expectations helped sustain investor interest and valuations, even though the “token” never came.

Romero did not directly address expectations for the token launch. However, he said that the company planned to return the full $180 million raised through Merkle to investors and emphasised that “over the last five years, [Farcaster] tried to be a good steward of investor capital.”

What Investors Are Saying

Prominent crypto investor Balaji Srinivasan defended Romero, saying on X that money would be returned to investors and calling Farcaster "perhaps the best decentralized social protocol." Srinivasan added that Romero was already independently wealthy from his years at Coinbase and chose to spend his time working on decentralization.

Romero also addressed personal financial claims, stating that his home was purchased with proceeds from the Coinbase IPO, not with investor capital at Farcaster.

Leadership Change: Neynar Takes Over Farcaster

Under the transition, Neynar will take ownership of Farcaster’s core infrastructure and run the protocol going forward. According to Romero, this would give the company a more developer-focused direction. 

Read also: Why Japan’s Bond Moves Matter More Than Crypto Sentiment For Investors Now

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