Friend.tech, a newly introduced decentralized social network operating on the DeSo (Decentralized Social) framework, demonstrated a remarkable feat on August 19th by amassing over $1 million in fees within a mere 24-hour span.
This achievement surpassed well-established contenders in the crypto arena, including Uniswap and the Bitcoin network.
The beta version of this groundbreaking platform was unveiled on August 11th, and its distinctive feature lies in its ability to enable users to tokenize their social connections.
This is realized through the acquisition and trading of “shares” in their network, granting the purchaser of a share the privilege of engaging in private communication with the share’s owner.
Notably, the platform imposes a 5% transaction fee, with the owner reaping the rewards from the trade’s spread.
Powered by Coinbase’s layer-2 Base technology, Friend.tech has garnered substantial traction. Data from DefiLlama reveals that the platform amassed an astonishing $1.12 million in fees in a single day, tallying up to $2.8 million since its launch.
Presently, the total revenue for the project stands at $818,620, buttressed by over 650,000 transactions and a cohort of more than 60,000 distinct traders.
The mastermind behind this endeavor is purported to be a developer operating under the moniker “Racer.” A senior software engineer at Coinbase attested to Racer’s past creations, which encompass the social media networks TweetDAO and Stealcam, both grounded in nonfungible tokens (NFTs).
With Friend.tech, Racer’s ambition is to beckon crypto influencers armed with a substantial fan base, enabling them to accrue royalties from trading fees.
Additionally, the platform aims to serve Web3 projects aspiring to cultivate ties with crypto industry powerhouses and venture capitalists.
READ MORE: Crypto Influencer Files $16 Million Lawsuit Against Bitget Exchange
The platform’s fervor has also fanned the flames of discussions concerning its revenue model, associated risks, and trajectory.
An anonymous researcher within the pseudonymous decentralized finance realm, Ignas, highlighted that the present business model of Friend.tech hinges solely on trading fees, thereby bypassing income from having more shareholders.
He further speculated that contentious figures could exploit the system to reap more substantial profits or even employ strategies aimed at fomenting fear, uncertainty, and doubt (FUD).
Lux Moreau, the progenitor of Talk.Markets, spotlighted the escalation of share prices as they are traded.
Notably, the 500th member procures a share at around 15.6Ξ, while the 250th member shells out 3.9Ξ, and the 100th participant acquires a share for 0.625Ξ.
In sum, Friend.tech’s ascent to prominence as a decentralized social network has been underscored by its remarkable financial performance within its initial 24 hours.
This accomplishment has positioned it as a contender to reckon with in the crypto realm, bringing fresh perspectives and debates about its operational framework and foreseeable trajectory.
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