The new application has collected over 2000 ETH and more than 100,000 transactions in a single day, rivaling OpenSea.
Social media has become an integral part of our lives, connecting us with friends, celebrities and influencers.
However, the landscape is evolving rapidly with the introduction of blockchain technology and cryptocurrencies. A new player in this space, friend.tech, has recently emerged and offers a unique way to trade Twitter profiles.
In this article, we’ll explore what Friend.tech is, why it’s attracting attention, the concept of social tokens, its potential for success, and how users can get involved.
What is Friend.tech?
Image courtesy of nft now
Friend.tech is not your typical social media app. It is built on Coinbase’s base chain, a layer 2 blockchain that offers negligible gas fees and instant transactions.
The platform allows users to tokenize their Twitter profiles by connecting them to an Ethereum wallet. Each friends.tech Twitter profile is represented by shares that users can buy and sell. This essentially turns personal brands into tradable assets.
Image courtesy: DataWallet
The pricing of these stocks follows a unique mechanism known as the peg curve. As more people invest in a particular Twitter profile’s shares, the price increases by a predetermined percentage. Conversely, when you sell shares, the price goes down by the same proportion. This innovative model combines social media engagement with the principles of tokenomics.
The allure of Friend.tech
Image courtesy Dune Analytics
Friend.tech has attracted the attention of crypto enthusiasts and traders due to its special approach and Base Layer 2 chain features. Within just two weeks of its launch, the platform has gained impressive traction. It has a user base of 97,000 traders and has facilitated almost 40,000 Ethereum worth of trading volume, which is around $65 million.
Image Courtesy: DeFi Llama
According to DeFi Llama, friend.tech is currently the third-highest earning protocol in the cryptocurrency space, generating around $1.4 million in 24-hour fees at the time of writing.
Beyond the crypto community, the platform is also attracting figures outside of the crypto space, highlighting its potential to bridge the gap between traditional social media and blockchain-based platforms.
Understand social tokens and their challenges
Image Courtesy: Single Grain
Social tokens are not a new concept in the cryptocurrency space. However, their adoption has been limited due to challenges such as lack of standardization, potential scams, and misaligned incentives. Creators often struggle to roll out personal tokens as it can be time consuming and negatively impact their reputation.
Additionally, existing models such as membership NFTs have limitations. These tokens provide access to exclusive content or services, but are often overpriced when first released, leading to disillusionment among buyers. As a result, many projects disappear shortly after launch.
The innovative solution from Friend.tech
Image courtesy: DataWallet
Friend.tech addresses these challenges by combining the benefits of membership tokens with the NFT model. The platform ensures fairness by launching all social tokens under the same parameters. Creators only get one token to start, eliminating the risk of tossing followers extra tokens.
The platform charges a trading fee of 5%, which is reasonable compared to membership NFTs, and shares part of it (5%) with the creators. This fee structure balances incentives and motivates creators to provide consistent value to token holders.
Is Friend.tech a scam?
On the platform, every social token follows the same seed parameters. There are no insider allocations and each creator will initially only receive one token to avoid flooding the market. Their earnings come solely from the evaluation and trading of their shares by others, making their money from trading fees.
Friend.tech also eliminates the need to deal with complicated DEX interfaces and liquidity pool monitoring. All you have to do is connect your Twitter account to the app and your shares of social tokens will be assigned automatically.
The fee structure (5%) effectively aligns the incentives for project developers with those of token holders, motivating developers to continuously introduce new services, products and updates to their NFT communities. Trading and proliferation of NFTs reflect this dynamic, sustained, and long-term commitment.
The viability of the platform depends on the creators always providing value to their membership token holders. As long as this value creation continues, creators can earn revenue from trading fees, ensuring a continuous revenue stream on the platform.
How to make money with Friend.tech?
Users can use friends.tech to benefit from the growth of the platform in a number of ways:
1. Speculate on platform growth
As with any new platform, users can speculate on Friend.tech’s growth by investing in leading creator tokens.
2. Identify undervalued accounts
Users can search Twitter accounts of celebrities who have recently joined the platform. Buying their shares early at a bargain price can yield significant profits as the founder grows in popularity.
3. Friend.tech Airdrop
This Friday we will start giving out reward points to app testers. Points are earned off-chain during the beta phase and have a special purpose when the app reaches official release status
100,000,000 points distributed over six months pic.twitter.com/MggfM4oitw
— friend.tech (@friendtech) August 14, 2023
One of the promising benefits of the app is that the platform will airdrop you points when you are active on the app. However, what the points bring you has not yet been revealed.
Get started with Friend.tech
1. Get an invite code
As the app is currently in beta, users will need an invite code. These codes can be obtained from existing Friend.tech users or by searching for them on Twitter.
2. Access the app
Search for “friend.tech” on your mobile device and add the app icon to your home screen.
3. Bridge the ETH with the base
Visit base.org and use the official bridge to move Ethereum to the base network. This allows you to mint your first stock and start trading.
Final Thoughts
While Friend.tech is still in its early stages, its unique approach to social media and tokenization shows promise. By seamlessly integrating blockchain technology, this platform has managed to garner attention in the crypto space and beyond.
As more Twitter accounts join the platform, social token trading could continue to thrive in the short-term. While the long-term development remains uncertain, friend.tech is undeniably a fascinating experiment at the intersection of social media and blockchain.
Rickie Sanchez is an article author specializing in cryptocurrency news. He has been actively investing in cryptocurrencies since late 2017. He is passionate about all things crypto and hopes readers of his articles will gain a full understanding of blockchain technology in the years to come.
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