- Friend.tech, launched on August 11, allows users to tokenize their social network, amassing significant fees and revenues in a day.
- Built on Coinbase’s layer-2 Base, the platform reports over 794,236 transactions with more than 70,000 unique traders.
- Despite its initial success, concerns arise regarding its business model, scalability, and privacy.
In an ever-evolving crypto landscape, a newcomer has entered the scene and shaken up the market. Friend.tech, a newly released decentralized social (DeSo) network, has generated about $1.5 million in fees and revenue of $709,739 within a span of 24 hours. In essence, the platform has surpassed some well-established players in the cryptocurrency ecosystem.
Now, let’s take a look at the platform that has outperformed the Bitcoin network and Uniswap as well. For starters, Friend.tech was launched on August 11 in the beta version. The platform gives users the opportunity to tokenize their social network. They can do so by buying and selling “shares” of their connections.
This allows a person who purchases another’s share to send private messages to each other. Reportedly, the platform charges a 5% fee on transactions. Since it’s basically a form of trade, there is no shock that there is profit as well. Well, the profit is the spread obtained from trade that represents the owner’s profits.
Friend.tech is built on Coinbase’s layer-2 Base, and lately, this platform has been seeing considerable activity. Moreover, at the time of writing, the platform has 794,236 transactions and more than 70,000 unique traders.
If there’s a buzz in the crypto world, there’s bound to be some controversy. Well, Friend.tech is apparently no exception. According to pseudonymous, decentralized finance researcher, Ignas, the revenue model’s sustainability is a bit bothering. He raises a valid point in asking that the revenue is solely based on trading but not on shareholders per se? Well, according to his tweet, controversial personalities might make more with this approach or even create FUD strategies to earn more.
Others believe that the platform’s hype will only be short-lived. According to one Twitter user, the ones who have joined this platform are crypto natives since the barrier is too high for newcomers. Moreover, the scalability is limited, and there are privacy concerns as well.
All in Friend.tech has reached remarkable achievement so far, and the success has ignited discussions related to business models, risks, and future potential. Will the platform fly or dive down? Let time unfold.