(1/10) Despite securing 1.59m+ DAU in April, Farcaster is losing its steam with DAU falling ~65% from its peak to ~560k per day.

Unique Cast (i.e. excl recast) is down from the peak of 73k to 35k (-52%).

(2/10) revenue is dwindling despite the overall Web3 users hitting all-time high.

(3/10) Other Web3 social media that have found some success have also lost their steam.

(4/10) Don’t get me wrong, I’m excited by Farcaster (particularly Frame). However, we are too focused on building better tech. 

The majority of the projects cited by A16Z below are tools for creators and builders. Only a few of these projects bother to talk about the impact to consumer’s interests, trends and social connections.

(5/10) 5 We need to stop putting tech first and start putting consumers first. The community needs to lead with consumer propositions, not some crypto-native ethos. 

While I believe we can only obtain sustainable success with better tech, the ‘platform shift’ will not happen without marrying the tech with a step-change in experience.

(6/10) The ecosystems also need to focus on identifying a key group or tribe that can drive widespread adoption outside of crypto. 

Facebook started off with Ivy League students. Twitter gained strong support at the South by South West Interactive conference. Who will be Farcaster's moment?

(7/10) Why can't crypto natives lead us to mass adoption? A few conversations with Web2 friends will reveal that the industry is not seen as 'cool'. As an industry, I don’t think we can create the kind of exclusivity that inspires envy. 

On the contrary, we are often associated with anything but cool to web2…...😱

(8/10) So far, a lot of web3 mass adoption relies on economic incentives. Web2 people will not change their social media platform for the latest airdrop. They seek to connect with their community and grow their audience. Some strive to feel significant and influential. Those who came for money will leave when the $ is gone.

(9/10) Even if Warpcast takes off, it will be an uphill battle to eventually generate cash. Social media is a tough business. Even Twitter hasn’t managed to consistently generate cash despite the brutal cost cutting.

(10/10) On a positive note, Farcaster has only been live for just under a year. There is time to pivot and change. 

As an investor, I'll be keeping an eyes on apps that leverage Farcaster but don’t reference it at all. They should show clear obsession over consumers, not tech. The community already has enough tools so let’s stop obsessing over social graphs and find the uses first. Let’s analyse, aggregate or optimise later.