Recently launched decentralized social network, Friend.tech, raked in over $1 million in fees within 24 hours on August 19, surpassing well-established crypto platforms such as Uniswap and the Bitcoin network.
Unveiled in its beta stage on August 11, Friend.tech empowers users to monetize their social connections by trading “shares” tied to their relationships. This allows individuals who acquire shares of another user to exchange private messages. Transaction fees are set at 5%, and the difference from these trades constitutes the profit for the share’s holder.
Operating on Coinbase’s layer-2 Base, the platform has been bustling with activity. Data from DefiLlama reveals that in a single day, Friend.tech accrued $1.12 million in fees, amassing a total of $2.8 million since its inception. As of now, the project’s revenue is pegged at $818,620, with a whopping 650,000 transactions conducted on the platform and over 60,000 distinct traders participating.
The brains behind this endeavor is thought to be the enigmatic developer named Racer. An insider from Coinbase, a senior software engineer, stated that Racer had previously architected social platforms like TweetDAO and Stealcam, both of which leverage nonfungible tokens. With Friend.tech, Racer’s vision is to offer crypto influencers with a massive following an opportunity to gain from trading fees. Furthermore, it provides Web3 initiatives a chance to solidify ties with venture capitalists and influential figures in the cryptocurrency realm.
This buzz has sparked an in-depth exploration of the platform’s revenue mechanics, associated risks, and potential trajectory. Decentralized finance expert operating under the pseudonym, Ignas, highlighted that Friend.tech’s primary revenue is sourced from trading fees rather than amassing more shareholders. Sharing his insights on X (previously known as Twitter), he added that polarizing figures might stand to gain more, and using fear, uncertainty, and doubt (FUD) might evolve as a revenue-generating tactic.
Lux Moreau, the mastermind behind Talk.Markets, also emphasized that the cost of shares tends to escalate considerably as they get sold. This trend could potentially foster the growth of niche communities or spawn alternate group platforms on Friend.tech.
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