In the rapidly evolving world of cryptocurrency and decentralized platforms, a new player has emerged, garnering attention and stirring conversations: Friend.tech. And with it SocialFi narrative.
What is Friend.tech?
Friend.tech is not just another social media platform—it’s a decentralized social network fueled by social tokens which is a part of the SocialFi (Social Financialized) narrative. Launched in August 2023, it has witnessed an impressive trajectory, gaining over 100,000 users and raking in about $25 million in just two weeks post-launch.
Social tokens on platforms like Friend.tech are proving to be a game-changer. They merge the dynamics of traditional cryptocurrencies with patronage systems. This fusion enables influencers, creators, and various entities to monetize their fan bases by offering them exclusive content and privileges.
How Does Friend.tech Work?
At its core, Friend.tech revolves around the concept of “keys,” earlier dubbed as “shares.” These are linked to Twitter (now referred to as X) accounts. When a user buys a key, they gain access to exclusive in-app chat rooms and content from the corresponding X user. Imagine it as buying a VIP pass to a private lounge where your favorite influencer hangs out.
Another intriguing feature of Friend.tech is its integration with other popular platforms. Recent reports suggest a massive influx of content creators from OnlyFans, especially after the crypto app added a photo-sharing feature.
Friend.tech operates as a browser-based application built on the Base network, an Ethereum scaling solution provided by Coinbase.
The Meteoric Rise of Friend.tech
It’s worth noting that Friend.tech isn’t the pioneering platform in the social token arena. Roll, launched in 2022, sought to enable on-chain subscriber tiers reminiscent of Patreon. However, the explosive growth and adoption of Friend.tech have overshadowed its predecessors. Within a fortnight of its launch, it amassed a staggering $1 million in fees in just 24 hours. That’s a daily revenue of over $700,000 post deductions.
The platform has also proved lucrative for its top earners, particularly esports influencers. They’ve seen exponential financial gains in mere days.
Understanding the Concerns
But as with all things in the crypto domain, there’s a flip side. Some red flags include:
- Potential for Manipulation: As a nascent platform, Friend.tech could be susceptible to various manipulations. Users need to be vigilant and wary of deals that appear overly lucrative.
- Rebranding Concerns: Before its current avatar, Friend.tech was known as Stealcam, focusing on selling selfies using a “steal to reveal” mechanism. This abrupt rebranding might raise eyebrows.
- Sustainability Issues: The platform’s virality took its founders by surprise. The challenge now lies in scaling its infrastructure and addressing emerging issues.
- Ponzi Scheme Comparisons: Critics argue that the platform’s design, where the value of keys rises with increased investment, resembles a Ponzi scheme. This could result in a system crash, leading to a scramble to offload keys.
Friend.tech Alternatives: Stars Arena and Cipher.fan
As the world of decentralized social platforms continues to grow, there are noteworthy competitors emerging in the market. Stars Arena is one such platform, challenging Friend.tech’s dominance. A recent offshoot of Friend.tech, it is built on Avalanche’s Contract Chain (C-Chain) and was formerly known as Starshares. Since its inception in September, Stars Arena has witnessed a sharp uptick in its transaction volume, soaring past $1.7 million in a day. Similar to Friend.tech, Stars Arena is a social token-driven platform where influencers and creators can monetize their fan base. The integration of Twitter accounts and the ability to trade profile tokens of other members sets it apart. However, it’s crucial to note that the platform faced security issues recently, with hackers exploiting a vulnerability, though it has been addressed since.
On the other hand, cipher.fan, another SocialFi project, offers a similar experience to Friend.tech. Launched on Arbitrum, users on cipher.fan can purchase and trade “shares” of personal X accounts termed as Cores—akin to Friend.tech’s “Keys”. With its recent upgrade, the platform introduced several enhancements, such as UI optimization and algorithm improvements. Now, users need to possess a minimum of five Cores or have a Core value exceeding 0.01 $ETH to post on the platform. Adding to its credentials, cipher.fan recently announced a successful $100k fundraising in a strategic private round, aimed at team expansion and product enhancement.
Final Thoughts
Friend.tech has undeniably shaken up the social crypto space. Its novel approach of merging social networking with crypto mechanisms offers both opportunities and challenges. While it promises a new frontier for creators to monetize their content, potential users should step with caution, fully understanding the risks involved.
Remember that crypto is risky and nothing here is financial advice.
Finally if you want to watch a video review of Friend Tech, check it out here:
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