After the sudden entry and pullback of the Bald token, another project launched on Coinbase's Base network recently went viral in the crypto community.
The Web3 arena buzzed with excitement as Friend.tech, a novel social platform, made its debut on the Base L2 blockchain just over a week ago. The new app invites users into an ecosystem where they can both purchase and trade its "friend tokens" (originally called 'shares', now renamed 'keys'). These 'shares' unlock private chat rooms with the respective account holders.
In no time, influencers, predominantly from X (formerly Twitter), were leveraging this platform, broadcasting its potential to their large follower bases. Many view it as a fresh stream of income. With every share transaction on Friend.tech, there's a 10% fee – half goes directly to the account holder while the other half fuels the project’s treasury. A simple principle underpins the app: the greater the number of holders, the higher the value of the shares. For some elite accounts, earnings are skyrocketing, pulling in more than 1 ETH daily. A hint of ponzi-nomics perhaps?
The app's user base has swelled immensely. Since its inception on August 11, data indicates that Friend.tech has roped in over 100,000 users, processed an impressive 1.9 million transactions on the Base L2 blockchain, and raked in fees totaling an impressive $3.3 million. The platform has ascended to the ranks of the top five apps in terms of fee generation, according to Defillama.
However, not all feedback has been positive. Some participants have raised eyebrows at the project’s pricing structure. The primary concern revolves around the share prices; as their supply increases, prices surge exponentially. Such a design seems to favor smaller groups, consequently limiting the potential for broader participation.
The upper echelon of accounts on Friend.tech find their shares oscillating between 1.4 and 2.6 ETH, most having only around 130-140 holders. It begs the question: how many are genuinely ready to splash over $2k just for a chat with an influencer?
Moreover, recent revelations on X unveiled a potentially concerning link: the founders behind Friend.tech are the same figures associated with the now-defunct NFT venture, Kosetto, which was abandoned soon after its minting last December.
Yet, the platform isn’t devoid of heavyweight supporters. Paradigm, one of the crypto industry's titans, has thrown its weight behind the project, and there's a buzz about a forthcoming airdrop – a magnet for airdrop farmers, ensuring sustained vibrancy on Friend.tech.
While the sustainability of this new platform in the crypto world is still a topic of debate, its innovative model definitely beckons exploration. At the time of writing, Friend.tech operates on an invite-only basis. If you're interested in joining the platform, you can readily find some invite codes on X.
Meanwhile, we will continue Observing what might become the next viral launch on the Base blockchain.