What is Friend.tech, social platform earning over $1m in fees
Friend.tech, a decentralized social platform, sees a rapid ascent post-beta launch, sparking debates on data privacy and novel monetization of social interactions.
Friend.tech has set the crypto world abuzz in less than a week since its beta launch. This decentralized social platform has outpaced established marketplaces and ignited debates about its future, data privacy, and the unprecedented way it monetizes social interactions.
If you have been following crypto Twitter lately, you’ve probably stumbled across Friend.tech, a new platform heralding a paradigm shift in social networking within the crypto universe.
In its essence, Friend.tech is a marketplace for friends, a decentralized platform where users tokenize their social connections, granting privileges such as private messaging and interaction rights.
But what’s behind this sensational rise, and why is it garnering so much attention? Let’s dive into the world of Friend.tech.
What is Friend.tech and how does it work
At its core, Friend.tech is a decentralized platform built on Base. This layer-2 network allows users to sell “shares” of themselves, providing a unique monetization avenue for influencers and users alike.
In other words, by transforming friendships into tradable commodities, the platform enables users to sell “shares” of themselves, creating a new dynamic in social interaction within the blockchain space.
Pseudonymous developer Racer, behind Friend.tech, previously created TweetDAO, an early venture into decentralized social media.
After the downfall of TweetDAO, Racer returned with another platform, Stealcam, later rebranded to Friend.tech, to expand its reach among web3 influencers.
Before its rebranding, Stealcam allowed users to mint images as non-fungible tokens (NFTs) and “steal” them for ETH. The pivot to Friend.tech came as creator earnings dropped, leading to a strategic repositioning to attract influencers and content creators.
Technology and infrastructure
- Built on Base: Friend.tech operates on Coinbase‘s new layer-2 network, Base, enabling faster and more affordable transactions than traditional Ethereum layer-1 solutions.
- Decentralization: The decentralized nature of Friend.tech ensures that users maintain control over their data and connections. It contrasts with centralized social media platforms that often exert considerable control over users’ information and interactions.
- Smart contracts: Friend.tech’s operations are governed by smart contracts, ensuring transparency, trust, and automation in various processes like buying/selling shares and revenue distribution.
Functionality
- Profiles creation: Users can create profiles on the platform and list “shares” of themselves, akin to stock shares in a company.
- Buying and selling shares: Others can buy and sell these shares, granting ownership rights and specific privileges like private messaging, exclusive content, and more.
- Dynamic valuation: The value of a user’s share can fluctuate based on demand and supply, reflecting their popularity or engagement on the platform.
- Interaction and engagement: The platform allows for unique interactions and collaborations, providing a novel way for influencers and individuals to monetize their social presence.
Economic model
- Share distribution: Each user has limited shares that can be bought or sold. The scarcity and exclusivity of these shares can affect their market value.
- Fee structure: Friend.tech collects fees for various transactions, such as buying and selling shares, generating revenue for the platform.
- Incentive mechanism: The platform may also employ various incentive mechanisms to reward active users or those who contribute positively to the community.
Milestones and metrics
Since its launch, Friend.tech has taken the crypto world by storm with impressive trading volumes and record-breaking transactions. Let’s take a moment to dissect the numbers:
- Transactions: According to Dune Analytics, a staggering 1.25 million transactions have been facilitated by the application since its inception. Such numbers reflect not only the platform’s robust architecture but also its user base’s faith and intrigue.
- Trading volume: With nearly 33,000 ETH in lifetime trading volume, equating to a remarkable $55.2 million, Friend.tech has managed to outpace even established NFT marketplaces, like OpenSea. This trading volume has been so significant that it nearly doubled the volume of OpenSea on a given day.
- Revenue impact: Adding to this momentum, according to DefiLlama, Friend.tech has now become the top revenue-generating protocol in the past 24 hours ($709k), trailing only Ethereum and Tron (TRX).
- Base network impact: Operating on Base, crypto exchange Coinbase’s new layer-2 network, Friend.tech is also impacting the overall network positively. Friend.tech’s massive influx of users is a milestone for the platform itself and a validation of Base’s potential in the decentralized world.
- Influencers onboard: The platform has successfully courted influencers with substantial Twitter followings, such as Jordan Fish (Cobie) and Hsaka Trades. The unique opportunity to tokenize social networks has attracted high-profile users, accelerating the platform’s growth.
- Community engagement: The rapid adaptation and community engagement witnessed within the platform have turned group chats into intimate community experiences. The promise of revenue shares, premium subscriptions, and the like has created a new social dynamic and monetization channel for influencers.
- Fee generation: Friend.tech’s unique social tokenization protocol allowed it to generate over $1.4 million in fees in 24 hours on August 19. With a 5% transaction fee, this remarkable revenue generation places the platform amongst the top revenue generators in the crypto ecosystem.
- Total users: Since its launch, Friend.tech’s total project revenue has reached a substantial figure on the social platform with over 77,000 unique traders. This rapid accumulation of revenue underscores the platform’s potential as a significant player in the crypto world.
Friend.tech’s perspectives
The milestones and metrics that Friend.tech achieved within such a short period reflect the potential of decentralized social platforms.
Whether it’s the immense trading volumes or the unique community experiences that are being fostered, Friend.tech has carved a distinctive space in the crypto ecosystem.
However, like all pioneering projects, it might face challenges and risks that it must navigate with prudence and transparency. It’s a chapter in crypto’s narrative that will be keenly observed by enthusiasts, investors, and influencers alike.
