Surprising reports are coming from the cryptocurrency market. Friend.tech, a newly launched decentralized social network, is conquering the market at lightning speed, surpassing titans like Uniswap and the Bitcoin network. But what really lies behind this phenomenon?
A novelty in the cryptocurrency market, Friend.tech, just a few days after its debut, is generating massive profits. In just one day, on August 19th, the platform earned over a million dollars in fees, surpassing established positions in the cryptocurrency ecosystem.
This platform was introduced in beta version on August 11th. It offers users the opportunity to tokenize their social network by buying and selling “shares” of their connections. By purchasing shares of another person, the buyer can send them private messages. Reports suggest that the protocol charges a 5% fee on transactions, with the difference in transactions being the profit of the owner.
Using Coinbase’s layer, known as layer-2 Base, Friend.tech saw significant traffic. Data from DefiLlama indicates that within 24 hours the platform generated $1.12 million in fees, and since its launch, this amount has increased to $2.8 million.
The project is believed to be led by a pseudonymous developer named Racer. According to a senior software engineer at Coinbase, Racer previously created social networks such as TweetDAO and Stealcam, based on non-fungible tokens (NFTs). With Friend.tech, Racer targets crypto influencers with a broad fan base to earn transaction fees, as well as Web3 projects that want to strengthen relationships with venture capitalists and key players in the cryptocurrency industry.
The hype around Friend.tech also prompted an analysis of the social platform’s revenue model, risks, and future. A pseudonymous decentralized finance (DeFi) researcher, Ignas, noted that in the current Friend.tech business model “revenues come solely from transaction fees and not from having more shareholders.” He also pointed out that controversial users might earn more or even create FUD as a strategy to earn from fees.
Lux Moreau, founder of Talk.Markets, also noted that as shares are sold, their prices surge sharply, which might encourage the formation of smaller groups on the platform or alternative groups.
Friend.tech is undoubtedly a revolution in the crypto world, combining advanced technologies with social networks. Time will tell if this platform will be able to maintain its dominant position among the giants of the cryptocurrency market.
