The CLANKER token price experienced a significant surge following the acquisition of Clanker, an AI agent-powered token launch platform on the Base network, by Farcaster. The token's price rose by over 360% in the last week.
This strategic acquisition by Farcaster, a web3 social media platform, indicates a clear intention to expand its presence in the "SocialFi" (Social Finance) sector. The CLANKER token reached a new all-time high of approximately $143 on October 26 and is currently trading around $112.
By integrating Clanker's infrastructure, Farcaster, which initially positioned itself as a decentralized social network, is now set to compete more directly with other Base-native SocialFi platforms, such as Zora.
Farcaster announced on October 23 via an X post that it plans to integrate the AI token-launching agent platform, also referred to as "tokenbot," more deeply into its application. The objective is to simplify the process for users to create and engage with on-chain communities.
New Tokenomics and User Growth
Following the Farcaster acquisition, the company unveiled substantial changes to CLANKER's tokenomics designed to benefit token holders. Farcaster will utilize the protocol fees generated by Clanker to purchase and hold CLANKER tokens.
Furthermore, tokens from earlier fee vaults will be burned, consequently reducing the circulating supply. It was also reported that approximately 7% of the total CLANKER supply has been permanently locked in a one-sided liquidity pool to enhance market depth.
Shortly after this news, on October 28, Farcaster reported reaching an all-time high in daily active users (DAU), although specific figures were not disclosed.
Data from Dune Analytics indicates that the social network has 1.4 million registered users, with approximately 20,000 active users as of September this year. Clanker, which was created in November by Farcaster ecosystem developers, gained popularity by initiating the "AI memecoin boom" on Base, enabling users to launch tokens through simple text prompts.
While the financial terms of the Farcaster acquisition were not disclosed, this move follows months of overlapping development. Clanker was involved in a controversy in May when it severed ties with co-founder 'proxystudio,' who was identified as the same individual (Gabagool.eth) implicated in a $350,000 theft from the Velodrome Finance team in 2022.
It was reported that the stolen funds were returned and that no evidence of wrongdoing was found during the developer's tenure at Clanker. Since its inception, Clanker has generated over $50 million in fees.
The information presented in this article is for informational purposes only and should not be interpreted as investment advice. The cryptocurrency market is highly volatile and may involve significant risks. We recommend conducting your own analysis.