The platform, built on an EVM-based layer 2 and leverages smart contracts, ensures a secure environment for transactions and interactions. Additionally, Friend.tech has been consistently generating about $2.7 million in fees each month. Two weeks after its launch, Friend.tech earned a reported $1 million in fees, equivalent to 5% of the value of each transaction, in a single 24-hour period. That translates to more than $700,000 in ether revenue after accounting for gas fees and other costs in just a day.
- Additionally, Friend.tech benefits from being backed by Coinbase, a listed exchange.
- The last four days alone have witnessed an impressive upswing, with user numbers soaring by ~120%.
- At this point, they are ready to begin buying and selling keys and participating in private chats.
- For the pseudonymous founders of Friend.tech, the bigger concern is sustainability.
Once in the app, a new user links their Google and X accounts and bridges ether from Arbitrum to the base wallet address. At this point, they are ready to begin buying and selling keys and participating in private chats. Simply put, Friend.tech is a mobile-based social media platform with a cryptocurrency twist. The app markets itself as “the marketplace for your friends” on its website.
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Much like other, non-crypto social media platforms that are in beta — like BlueSky — Friend.tech requires users to have an invite code from other users in order to sign up. The database, listed briefly on GitHub and now withdrawn, apparently listed the crypto wallet addresses and linked X accounts. The growth correlates with the huge revenues made by the platform since its Aug. 10 launch, with over $25 million in fees generated, according to DefiLlama. A Dune Analytics dashboard corroborates the finding, pegging the number of unique users to at least 80,000, with 15,000 users added since Sunday.
At the same time, it also encourages users to purchase KEY from different KOLs to earn transaction fees and data. This strategy is similar to the airdrop strategy of projects like Blur, attracting users to use the product through long-term point incentives and expected token airdrops. Friend.tech is an on-chain social networking platform built on Coinbase’s Layer 2 blockchain, Base. The platform empowers users to tokenize their identity by selling and buying keys (previously known as shares) of themselves to their followers. An added incentive for participants in the Friend.tech ecosystem is that users classified as “creators” (as opposed to “followers”) see key prices increase as their networks grow larger. This obviously benefits creators by providing them more rewards in the form of fees.
Friend.tech Airdrop
As a user, you join specific groups by paying a participation fee (in Ethereum), which gives you a share of that group. Later, if you leave the group, you can sell your shares to liquidate your investment. When group members experience a rise in share value, they have the option to sell their shares and exit the group. This means that joining a group has social benefits and potential financial gains. Friend.tech is a browser-based application launched on the Base network, an Ethereum scaling network provided by crypto exchange Coinbase.
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The essence of DSM top 10 most profitable crypto coins to mine in 2020 lies in its ability to provide users with more control, privacy, and potentially, rewards for their content creation without exploiting their data. The brilliance of friend.tech lies not only in its valuation mechanism but also in its ability to distill insights from the cacophony of platforms. The selling price is actually the buying price minus what you want to sell it for (like the buying price for the 199th share). For example, if we say Cobie has 200 shares out there, each share you buy would cost you 2.5 ETH (the current price of Cobie’s shares). But if you try to sell your Cobie shares when there are 200 shares already, you’d only get 2.47 ETH for each share.
Is It Time to Board the Friend.tech Hype Train?
This expectation has created opportunities for some bots, which analyze data to purchase KEY tokens in advance and then sell them after reaching a certain profit level. Each user on the app has a chat group akin to ones found on platforms like Telegram. The catch is that users must purchase keys in order to enter other users’ private chats. They can later choose to sell those keys if they decide to leave the chat. The Friend.tech app requires users to link their Ethereum wallet with their account on X, the platform formerly known as Twitter. For one, some users realized that this gave the Friend.tech account certain permissions to their X account — like the ability to post and retweet on their behalf.
Additionally, Legendary, a pseudonymous Web3 marketer, shared a bearish prediction about the longevity of Friend.tech, drawing parallels to BitClout, a DeSo app from 2021. Our platform earns commissions through partnerships and sponsors, which is how we support our analyst. Sign up for free online courses covering the most important core topics in the crypto universe and earn your on-chain certificate – demonstrating your new knowledge of major Web3 topics. For the pseudonymous founders of Friend.tech, the bigger concern is sustainability.
This shift challenges the “walled gardens” mainstream social media platforms have erected over the years. Upon entering the app, you will be given a complimentary chance to purchase your own friend shares. When you buy a stake in another person’s account on friend.tech, you automatically receive access to a private chatroom with the account’s owner and their other stakeholders. Notably, on a single day, August 19, friend.tech achieved a staggering milestone — amassing over $1 million in charges.
A leaked database shows that more than 101,000 users have signed up since the invite-only beta version of the app launched on Aug. 10. Friend.tech is a hot yet continuously controversial social trading protocol. From its token pricing model, it’s evident that the mechanism design inclines towards inducing a Fear of Missing Out (FOMO) among potential investors. Due to promising airdrop expectations coupled with occasional sharp profit effects, this project is bound to exhibit impressive user data in the short term. Currently, the momentum around Friend.tech is consistently rising with a rapid increase in active addresses and on-chain locked asset values. The impact of this pricing curve is that when multiple KEY tokens are purchased, the price can multiply in the short term.
One ether is worth approximately $1,670 as of the publication of this article. For the Friend.tech project, receiving the favor of Paradigm, a top investment fund in the cryptocurrency industry, is undoubtedly a huge advantage. Even before the project was fully developed and when there was a lack of detailed project whitepaper, the market still had confidence in the project. This trust and investment are largely due to Paradigm’s support and endorsement.
Friend.tech has been described as a decentralized social Web3 app and, with all those buzzwords lumped in together, one can be sure there’s a lot of inorganic hype behind this one as well. It has all the other classic schemes usually connected to crypto projects as well, such as a fee-sharing mechanism and airdrops to reward users. Many think they’ve found that very project in Friend.tech, which has gone viral in the crypto community over the past few days.
