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- 1 Friendttech is a new crypto-based social media platform that gained huge popularity within just a few hours of launch.
- 2 While the community is going gung-ho about it, some experts point out its loopholes too.
- 3 It is not the first decentralized social media platform, so it makes sense to look at a few others.
Occasionally, innovative platforms appear in the crypto sphere and take it by storm. Something similar happened recently when Friend.tech was launched on August 19, 2023. It’s a decentralized (DeSo) network that generated $1 Million in fees within 24 hours of launch. Most remarkably, it has foregone established players like Bitcoin and UniSwap.
Friendtech’s Journey So Far
On August 11, 2023, the platform launched its beta version. The USP of this platform is its tokenization program. It allowed the users to buy and sell the shares of their connections. The buyer of the share can send private messages directly to the seller. As per the reports, the protocol charges a fee of 5% on transactions. This also includes the earnings from the trade.
The framework has been built on Coinbase’s Layer-2 base. According to DefiLlama, Friend. tech has generated $2.8M since its launch. Its total project revenue stood at $818,620 at the time of writing.
It managed to execute 650,000 transactions while handling more than 60,000 unique traders. Interestingly enough, no one is 100% sure about the developer. But many believe that it was created by pseudonymous developer Racer.
Some Criticism Too
A Coinbase engineer informed me that the developer has forged similar social media platforms before. His earlier creations involved Stealcam and TweetDAO which worked on non-fungible tokens.
Based on reports, Friend.tech is Racer’s bid to grab attention from crypto influencers. The platform will help him earn royalties on trading fees. It will tap into the extensive fan bases as well as Web3 projects.
The platform will form collaborations with venture capitalists and other key players in the industry. As it happens, the hype has grabbed everyone’s attention toward the technicalities.
Crypto users have started to analyze the platform’s risks, revenue models, and risks. Another pseudonymous DeFi researcher Ignas highlighted the platform’s sole source of revenue. He pointed out that the platform’s making money only through trading fees.
It is not making use of shareholders which makes the platform flawed. Ignas stated that popular personalities take advantage of the structure. They might earn more by creating FUDs that speed up token sales resulting in more fee generation.
Lux Moreau, the founder of Talk.Markets also found another loophole in it. He said that shares that are in demand will gain better prices, and they’ll encourage small groups to create altcoins.
The future of Friend.tech is unknown to anyone. However, there are other blockchain-based social media platforms in the space. One can look at them and surmise what the future holds for this one.
Popular Blockchain-Based Social Media Platforms
- Steemit– Steemit is hugely popular among social media users. It gives users chances to earn tokens while letting content creators unfurl their creativity.
- Veracity– It’s a blockchain-based social media platform that focuses on videos and monetization. It empowers creators by giving them fair rewards in crypto.
- Binded– Binded focuses particularly on photographers. Its blockchain protects their work from plagiarism while giving them new ways of making money.
- Audius– It’s a decentralized music-sharing and streaming platform created on the Ethereum blockchain. It offers high transparency and great opportunities for rewards.
So far, many blockchain-based social media platforms have done well. Therefore, Friend.tech can also do something great. But the markets will have to wait and see if that happens or not.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
