# Wallet Related Articles

HTX News Center provides the latest articles and in-depth analysis on "Wallet", covering market trends, project updates, tech developments, and regulatory policies in the crypto industry.

Valuation of $1 Billion, After Five Years of Exploration, Why Did It Suddenly 'Admit Defeat'?

After five years of development, $180 million in funding, and a valuation nearing $1 billion, Farcaster has officially conceded that its Web3 social strategy did not succeed. Co-founder Dan Romero announced a major pivot: abandoning the "social-first" approach to focus entirely on wallet development. Farcaster, launched in 2020, aimed to solve Web2 platform issues like centralized control, user data ownership, and creator monetization through a decentralized protocol. Despite initial traction in 2024—when monthly active users (MAU) briefly surged to 80,000—growth proved unsustainable. MAU later fell to under 20,000 by late 2025, with the platform failing to attract users beyond a highly specific crypto-native audience. Key challenges included high onboarding barriers, heavily insular content, and an inability to compete with mainstream social platforms like X or Instagram. As one observer noted, it’s “easier to add social features to a wallet than to add a wallet to a social product.” Data revealed that Farcaster’s built-in wallet—initially a supplementary feature—showed stronger growth, retention, and usage metrics than its social components. This shift toward wallet-centric utility reflects a broader realization: in Web3, financial tools like transactions, transfers, and token interactions represent a clearer path to product-market fit than social features alone. The company’s acquisition of token launch tool Clanker and integration of AI agent capabilities further signal its commitment to a wallet-driven future. While some long-time users expressed disappointment over the cultural shift, Farcaster’s team has made a pragmatic choice to prioritize sustainable utility over idealized social networking.

比推12/09 00:55

Valuation of $1 Billion, After Five Years of Exploration, Why Did It Suddenly 'Admit Defeat'?

比推12/09 00:55

After a Valuation of $1 Billion and Five Years of Exploration, Why Did It 'Admit Defeat'?

After five years of development and raising $180 million at a near $1 billion valuation, Farcaster has officially conceded that its Web3 social strategy did not succeed. The platform, initially designed as a decentralized alternative to Twitter, aimed to address issues like platform monopoly, user data ownership, and creator monetization through an on-chain, protocol-based approach. Despite a brief surge in early 2024—when monthly active users (MAU) peaked at around 80,000—growth quickly stalled. MAU has since declined to under 20,000 by late 2025. Farcaster’s user base remained heavily concentrated within the crypto-native community, failing to attract mainstream users due to high barriers to entry, niche content, and inferior user experience compared to established platforms like X or Instagram. Co-founder Dan Romero announced a strategic pivot from social-first to a wallet-focused product, acknowledging that social alone wasn’t driving sustainable growth. Internal data showed that wallet features—used for transactions, trading, and interacting with dApps—consistently outperformed social modules in user retention and frequency. The shift reflects a broader realization: It’s easier to add social features to a wallet than to build a social product around crypto. While the move has sparked some community discontent, Farcaster is betting that deeper integration with on-chain utilities represents a more viable path to product-market fit.

深潮12/09 03:51

After a Valuation of $1 Billion and Five Years of Exploration, Why Did It 'Admit Defeat'?

深潮12/09 03:51

Valuation of $1 Billion, After Five Years of Exploration, Why Did It "Admit Defeat"?

Farcaster, a once-promising decentralized social protocol that raised $180 million and reached a near-$1 billion valuation, has officially pivoted away from its Web3 social networking strategy after 4.5 years of effort. Co-founder Dan Romero announced the shift toward a wallet-first approach, acknowledging that the original vision of a decentralized Twitter alternative did not achieve product-market fit. Despite initial excitement and growth—with monthly active users (MAU) briefly surging to around 80,000 in mid-2024—Farcaster failed to break out beyond the crypto-native user base. Its MAU later declined to under 20,000 by late 2025, revealing structural challenges: high onboarding barriers, highly insular content, and an inability to compete with established platforms like X or Instagram. The protocol’s wallet feature, initially introduced as a supplementary tool, demonstrated stronger retention and usage patterns, leading the team to refocus on wallet-based growth. The recent acquisition of token launch tool Clanker further signals this strategic turn toward financial utility rather than social interaction. The shift has sparked community debate, with long-time users expressing concern over the platform’s cultural change from social networking to transaction-oriented interactions. Nonetheless, Farcaster’s move underscores a broader realization in Web3: that social needs may not be the primary entry point for users, whereas practical tools like wallets offer clearer paths to adoption and value.

marsbit12/09 05:02

Valuation of $1 Billion, After Five Years of Exploration, Why Did It "Admit Defeat"?

marsbit12/09 05:02

Farcaster Shifts Course, 'Binance Square' and Others Take Over Crypto Social

Farcaster, a decentralized social protocol once seen as a flagship SocialFi project, has pivoted from its "social-first" strategy after four and a half years. Instead, it will now focus on building a consumer wallet to drive user growth, acknowledging that its previous approach lacked product-market fit. While Farcaster enjoyed support from top VCs and crypto influencers, it failed to retain users long-term. The platform struggled to compete with established Web2 social networks like Twitter and Telegram, where crypto communities are deeply embedded. Its shift aims to leverage wallet-based interactions to naturally spark social demand. However, this strategic turn may have come too late. Centralized exchanges, particularly Binance, have already successfully embedded social features into trading environments. Binance Square, originally Binance Feed, allows content creators to earn up to 50% commission from trades generated through their content. This incentive model, combined with Binance’s massive user base, has attracted influential traders and analysts, making it a dominant crypto social platform. Other exchanges like OKX and Gate are following suit, developing their own social features, indicating a broader trend of trading platforms expanding into social ecosystems. These platforms reduce compliance risks for creators and align naturally with crypto users’ financial motivations. The piece argues that crypto social products don’t necessarily need decentralization or heavy tokenization to succeed. Instead, they must serve real user needs: facilitating valuable information exchange, community building, and trust within crypto-native context. The success of exchange-based social platforms like Binance Square suggests that the future of crypto social may lie in utility-driven, scenario-specific networks rather than idealized decentralized social graphs.

Odaily星球日报12/09 06:47

Farcaster Shifts Course, 'Binance Square' and Others Take Over Crypto Social

Odaily星球日报12/09 06:47

SociFi Dream Shattered? Farcaster Pivots to Bet on Wallet Track

Farcaster, a decentralized social network protocol, has announced a major strategic shift after 4.5 years, abandoning its "social-first" approach to adopt a "wallet-first" growth model. Co-founder Dan Romero acknowledged that despite initial success—such as a surge to 100,000 daily active users (DAU) in early 2024 driven by features like Frames and the DEGEN airdrop—user engagement and revenue sharply declined later that year. By October 2025, monthly revenue had dropped 99% from its peak. The platform will now prioritize building a high-quality wallet within its official app, Warpcast, focusing on the intersection of wallets and social interaction. The new user journey emphasizes wallet funding and utility as key activation points. Farcaster is also enhancing its financial infrastructure through the acquisition of token launch platform Clanker and offering incentives like a 10% reward on USDC deposits. Frames, interactive mini-apps within the social feed, enable "content as transaction" capabilities, allowing users to mint, trade, and pay directly in their feeds. Despite raising $150 million in a 2024 Series A round at a $1 billion valuation, the move has drawn criticism. Some argue it signals the end of the SocialFi dream and a return to a transaction-focused model reminiscent of the 2017 ICO era. Others note challenges in a competitive wallet market and potential feature bloat. Farcaster remains an open protocol, and users can choose alternative clients, but the shift underscores a broader industry reality: pure Web3 social networks may struggle without integrating high-value financial tools to drive user engagement and retention.

marsbit2 days ago 08:52

SociFi Dream Shattered? Farcaster Pivots to Bet on Wallet Track

marsbit2 days ago 08:52

Farcaster Is Not a Pivot, It's Evolution: The True Ambition from Social to Wallet

Recently, Farcaster co-founder Dan Romero announced a shift in the project’s focus from "social-first" to "wallet-first," sparking widespread discussion. While some interpreted this as Farcaster abandoning social features or even signaling the failure of Web3 social networks, the move is better understood as a strategic evolution rather than a pivot. Farcaster’s integration of a built-in wallet is not a replacement for social functionality but an upgrade to improve user experience. It enables seamless on-chain interactions, especially as Frames evolve into more powerful Mini Apps. This enhancement allows users to mint NFTs, execute trades, and engage with decentralized applications without leaving the app—reducing friction and supporting richer crypto-native experiences. The shift reflects a broader trend: social apps are integrating wallets, and wallet apps are adding social features. This convergence is becoming the natural direction for consumer crypto applications. By combining social graphs with built-in wallets and Mini Apps, Farcaster enables closed-loop scenarios for asset creation, discovery, trading, and community interaction—all within a unified experience. Other platforms like Telegram, Zapper, Base App, and Binance are also exploring similar integrations, highlighting the growing importance of blending social context with financial activity. Farcaster’s open and composable social protocol allows developers to build diverse clients and applications, further expanding its ecosystem. In summary, Farcaster is not moving away from social—it is enhancing it. The integration of wallet functionality aims to drive growth, improve utility, and solidify its unique value proposition in the crypto space.

marsbitYesterday 17:21

Farcaster Is Not a Pivot, It's Evolution: The True Ambition from Social to Wallet

marsbitYesterday 17:21

Eight Years of Turbulence in Web3 Phones: From 'Geek Toy' to Xiaomi's 'Factory Standard'

Web3 Smartphones: An 8-Year Evolution from 'Geek Toy' to Xiaomi's 'Standard Feature' On December 10th, high-performance blockchain Sei announced a partnership with Xiaomi, the world's third-largest smartphone manufacturer. The Sei Foundation will develop a next-gen crypto wallet and DApp discovery platform, which will be pre-installed on Xiaomi's new smartphones for global markets (excluding mainland China and the US). Utilizing MPC technology, the collaboration aims to allow users to log in directly via Google or Xiaomi accounts, eliminating intimidating seed phrases. A pilot stablecoin payment system is also slated for 2026, enabling purchases at Xiaomi's retail stores with tokens like USDC. The journey of Web3 phones began around 2018 with devices like Sirin Labs' Finney and HTC's Exodus 1, which focused on "hardware sovereignty" and extreme security, often featuring physical safeguards or trusted execution environments (TEE). These early attempts, including niche projects like Pundi X's communication-focused BOB phone and Electroneum's low-cost "cloud mining" M1, were commercially unsuccessful due to high costs and poor user experience, remaining confined to tech enthusiasts. Mainstream manufacturers like Samsung cautiously entered the space around 2019, integrating features like the Samsung Blockchain Keystore into flagship models. A notable early example was the "KlaytnPhone" edition of the Galaxy Note 10, which included free KLAY, prefiguring the later "airdrop" model. Luxury brand Vertu and HTC also made attempts, but Web3 functions often remained hidden or mere marketing gimmicks. The market was revitalized in 2023 by the Solana Saga. Initially struggling, it sold out instantly after its included BONK token airdrop exceeded the phone's price, earning it the nickname "dividend phone." This success ushered in a new era of "ecosystem binding" and token incentives. Subsequent models like Solana Chapter 2 (Seeker) refined this model with soul-bound tokens (SBT) to prevent scalping. Competition intensified with the TON ecosystem's $99 Universal Basic Smartphone (UBS), Binance Labs' Coral Phone, and the JamboPhone—a $99 device focused on "learn-to-earn" models in emerging markets. An alternative approach emerged from China Telecom and Conflux's BSIM card, which adds Web3 capabilities to any Android phone via a secure SIM card. The evolution highlights five key shifts: 1) Advanced security is moving from simple TEE to architectures like TEEPIN and MPC; 2) Phones are now gateways to specific ecosystems (e.g., Solana, Aptos, Movement Labs); 3) User growth is driven by airdrops and economic incentives, not just security; 4) The focus has shifted from technical concepts (running a full node) to practical applications like payments; 5) The scale is changing dramatically, as Xiaomi's massive annual shipments could onboard hundreds of millions of users, far surpassing niche manufacturers. The conclusion is clear: the greatest barrier to Web3 adoption is not security but complex user experience. The ultimate goal is for Web3 to become an invisible, seamless feature—like 5G—rather than a marketed label. Solana Mobile proved incentive-driven adoption works, but the partnership between Sei and Xiaomi may demonstrate that experience-driven integration is the sustainable path to bringing Web3 to a billion users.

marsbit23h ago

Eight Years of Turbulence in Web3 Phones: From 'Geek Toy' to Xiaomi's 'Factory Standard'

marsbit23h ago

x402 V2 Released: What Are the Core Highlights?

The x402 protocol, initially developed by Coinbase, has now released its V2 upgrade. The core idea remains leveraging the HTTP 402 status code to embed payment logic directly into web requests. Since its launch, x402 has processed over 100 million payments across various use cases, such as API calls and AI agents purchasing compute resources. V2 introduces several major improvements. It supports wallet-based identity (e.g., Sign-In-With-X via CAIP-122) and reusable sessions, allowing users and autonomous agents to avoid repeated on-chain payments after initial authentication, significantly reducing latency and cost for high-frequency interactions. A unified payment interface now supports multiple chains (including Base and Solana) by default and integrates traditional payment rails like ACH and credit cards through Facilitators. Dynamic payTo routing enables complex pricing models and multi-tenant setups. The architecture is now modular and plugin-based, making it easier for developers to extend support for new chains or payment methods without altering core SDK code. Configuration is simplified, with automatic optimization based on developer preferences. A new discovery mechanism allows services to publish structured metadata, which Facilitators can automatically index, ensuring pricing and endpoint information stays current without manual updates. For end-users, V2 enables seamless, near-invisible payments with a "micro-subscription" feel. Developers benefit from reduced integration effort, dynamic pricing capabilities, and more flexible business logic. AI agents can autonomously transact using endowed wallets, making independent economic decisions. Overall, x402 V2 evolves from a pay-per-use tool into a versatile economic layer for the internet, though widespread adoption, modular risks, and regulatory challenges remain.

marsbit2h ago

x402 V2 Released: What Are the Core Highlights?

marsbit2h ago

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