In a groundbreaking development that underscores the ever-evolving landscape of the cryptocurrency world, Friend.tech, a decentralized social (DeSo) network, has managed to outshine established giants like Uniswap and the Bitcoin network. Launched in beta on August 11, the platform has made waves by generating over $1 million in fees in just 24 hours on August 19.
The brainchild of a pseudonymous developer known as Racer, Friend.tech introduces a paradigm shift by enabling users to tokenize their social networks. The innovative protocol allows individuals to buy and sell “shares” of their connections, thereby creating a novel way to monetize relationships. Beyond mere connections, the platform offers a unique feature that allows the purchaser of a share to communicate privately with the share owner. This transformational concept has captured the imagination of the crypto community.
Central to the platform’s success is its utilization of Coinbase’s layer-2 Base, which has facilitated remarkable activity on the platform. According to DefiLlama data, Friend.tech recorded an astonishing $1.12 million in fees within a single day, amassing a total of $2.8 million since its launch. Notably, the platform has seen more than 650,000 transactions and boasts over 60,000 distinct traders. With the current total project revenue pegged at $818,620, the platform’s momentum is undeniable.
The driving force behind Friend.tech is the enigmatic developer Racer, who has previously demonstrated prowess in the realm of social media networks based on nonfungible tokens (NFTs). TweetDAO and Stealcam are projects credited to Racer, both of which explore the novel intersection of social interaction and blockchain technology. With Friend.tech, Racer has ingeniously targeted crypto influencers with expansive fan bases, offering them a means to earn royalties on trading fees. Additionally, the platform seeks to strengthen ties between Web3 projects and key players in the cryptocurrency sector.
The rapid rise of Friend.tech has sparked discussions and debates within the crypto community. Decentralized finance (DeFi) researcher Ignas, who operates under a pseudonym, has raised questions about the sustainability of Friend.tech’s business model. He pointed out that the platform’s revenue is solely derived from trading fees and not from the expansion of shareholder numbers. Moreover, Ignas cautioned that the platform might inadvertently incentivize “controversial personalities” to drive more trading activity, potentially even exploiting fear, uncertainty, and doubt (FUD) to garner fees.
Lux Moreau, founder of Talk.Markets, offered another perspective, emphasizing that as share prices increase upon sale, there’s a possibility that this dynamic might encourage the formation of smaller, exclusive groups or alternative group structures. This could potentially reshape the platform’s social dynamics and lead to an intriguing array of communities.
The meteoric success of Friend.tech signifies more than just a financial milestone. It highlights the ongoing convergence of technology, social interaction, and finance, forging ahead with new possibilities. As the DeSo network continues to shape the crypto landscape, one can only wonder about the innovative developments that lie ahead. In the world of Friend.tech, relationships are not just connections; they are valuable assets propelling the next frontier of decentralized innovation.