In a surprising turn of events in the crypto world, the recently launched decentralized social network, Friend.tech, has clocked in over $1 million in fees within 24 hours on Aug. 19. This achievement overshadows the performance of notable crypto players such as Uniswap and even the Bitcoin network.
Beta-launched on Aug. 11, Friend.tech provides a unique feature allowing users to tokenize their social network. This is done by permitting users to buy and sell “shares” linked to their social connections. Once a user secures a share of another, it paves the way for direct private messaging between them. A notable aspect of the protocol is the 5% transaction fee, where the disparity from trades translates into the share owner’s earnings.
Built atop Coinbase’s layer-2 Base, Friend.tech has witnessed immense activity shortly after its launch. Data insights from DefiLlama reveal that the platform generated an impressive $1.12 million within 24 hours and a cumulative $2.8 million since its inception. Present figures indicate the total revenue of the project is pegged at $818,620. The platform has recorded a substantial 650,000+ transactions and has an active user base of over 60,000 distinct traders.
The mastermind behind Friend.tech is believed to be the enigmatic developer known as Racer. An insider from Coinbase attributes Racer with the inception of other social media networks like TweetDAO and Stealcam, both of which function on the principles of nonfungible tokens. With the launch of Friend.tech, Racer’s primary aim is to target prominent crypto influencers, enabling them to garner trading fee royalties. Additionally, Web3 projects seeking to foster robust relations with venture capitalists and influential figures in the crypto arena also stand to benefit.
This sudden burst of popularity has prompted a deep dive into the platform’s revenue structure, its inherent risks, and future prospects. Ignas, a researcher in decentralized finance, underscored that Friend.tech’s revenue stems solely from trading fees, not from an increasing shareholder base. He remarked on X (previously known as Twitter) that the platform may witness more earnings from controversial figures or those spreading fear, uncertainty, and doubt (FUD) as a strategy to amplify fees.
Lux Moreau, the founder of Talk.Markets, also highlighted that with the increasing sale of shares, their prices could skyrocket, potentially fostering the rise of smaller clusters or alternative group formations on the platform.