Friend.tech, a new decentralized social (DeSo) network, has recently outshone giants like Uniswap and the Bitcoin network by generating over $1 million in fees within 24 hours on August 19.
Launched in beta version on August 11, the platform lets users tokenize social connections by buying and selling “shares” of them.
A person buying another’s share can privately communicate with them, with the platform charging a 5% transaction fee and the spread representing the owner’s profit.
Built on Coinbase’s layer-2 Base, Friend.tech has witnessed significant activity. Data from DefiLlama shows that the platform generated $1.12 million in 24-hour fees and $2.8 million since launch.
Thse total project rfevenue is $818,620, and the platform has recorded over 650,000 transactions with more than 60,000 unique traders.
The mind behind Friend.tech is believed to be the pseudonymous developer Racer, known for creating TweetDAO and Stealcam, both NFT-based social media networks.
With Friend.tech, Racer aims to empower crypto influencers with broad fan bases to earn trading fee royalties and help Web3 projects connect with venture capitalists and other crypto industry leaders.
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The success of Friend.tech has sparked discussions and analyses regarding the platform’s revenue model, associated risks, and future prospects.
Ignas, a decentralized finance researcher, observed that the current business model relies solely on trading fees and not on increasing shareholders.
He also pointed out on X (formerly Twitter) that controversial personalities might exploit the system to earn more, even using fear, uncertainty, and doubt (FUD) as a strategy to generate fees.
Talk.Markets founder Lux Moreau has also highlighted the possibility of share prices increasing significantly as they are sold, which could encourage the formation of smaller or alternative groups within the platform.
In summary, Friend.tech has emerged as a promising player in the crypto ecosystem.
Its unique approach to tokenizing social connections and engaging influential crypto personas is generating considerable interest and activity.
However, the platform’s future depends on how it navigates potential risks and evolves its business model.
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