Friend.tech, launched in beta on August 11, has rapidly gained traction by allowing users to tokenize their social networks, resulting in over $1 million in fees within a day, surpassing Uniswap and Bitcoin in this regard. Despite its unique monetization model driving its rapid growth, experts emphasize potential challenges, including the possibility of rising share prices leading to smaller user groups.
In a remarkable development, Friend.tech, a recently introduced decentralized social (DeSo) network, has surpassed well-established players within the cryptocurrency space. In just 24 hours on August 19, the platform amassed an impressive $1 million in fees, outperforming Uniswap and even the Bitcoin network.
A Novel Approach to Social Networking
Unveiled in its beta version on August 11, Friend.tech distinguishes itself as more than a typical social platform. It introduces an innovative concept where users can tokenize their social connections. Through the buying and selling of “shares” of their connections, users can monetize their social networks in a groundbreaking manner. This approach fosters more meaningful connections between users. When a user acquires another’s share, they gain the privilege of sending private messages to each other.
The platform’s revenue model is simple yet effective. Friend.tech applies a 5% fee for every transaction. The difference between the buying and selling prices, known as the spread, represents the profit for the share’s owner.
Swift Growth and the Catalyst Behind Friend.tech
Built on Coinbase’s layer-2 Base, Friend.tech’s progress has been explosive. Data from DefiLlama indicates that the platform garnered fees amounting to $1.12 million within just 24 hours. This figure has grown to $2.8 million since its inception. Presently, the project has accumulated an impressive total revenue of $818,620. It has facilitated over 650,000 transactions and attracted over 60,000 unique traders.
The brain behind this groundbreaking endeavor is suspected to be the pseudonymous developer known as Racer. A senior software engineer at Coinbase shed light on Racer’s previous ventures, revealing his involvement in developing social media networks TweetDAO and Stealcam, both founded on nonfungible tokens (NFTs). With Friend.tech, Racer’s vision is clear: targeting crypto influencers with substantial followings, enabling them to earn royalties from trading fees. Furthermore, Web3 projects can utilize the platform to strengthen connections with venture capitalists and other significant figures in the cryptocurrency domain.
Analyzing the Future: Opportunities and Challenges
Friend.tech’s meteoric rise has sparked analysis from experts regarding its revenue model, potential risks, and future trajectory. Ignas, a pseudonymous decentralized finance researcher, astutely observed the platform’s business model. He highlighted that the platform’s revenue solely stems from trading fees, not increased shareholders. Drawing parallels to X (formerly Twitter), Ignas speculated that “Controversial personalities might earn more, or even creating FUD (Fear, Uncertainty, Doubt) will be used as a strategy to earn fees.”
Lux Moreau, the founder of Talk.Markets, also shared insights on potential challenges Friend.tech could face in the future. As shares are consistently traded on the platform, their prices are likely to surge, potentially leading to the formation of smaller user groups or alternative groups.
Conclusion
Friend.tech’s inventive approach to social networking and its enticing opportunities have positioned it as a formidable contender in the cryptocurrency landscape. While its future appears promising, addressing potential challenges and adapting to the evolving decentralized platform and cryptocurrency environment will be pivotal. Only time will reveal whether Friend.tech can sustain its current momentum and establish itself as a leading DeSo network.
