DeSo Platform, Friends.tech Earns Close to $1.5 Million Transaction Fees in Just 24 Hours; Beats Uniswap & Bitcoin

Updated: 21 August 2023

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In the swiftly evolving world of decentralized platforms, Friend.tech has emerged as a fresh name, grabbing the attention of crypto enthusiasts and analysts alike. A decentralized social network or DeSo earned close to $1.5 million in transaction fees in just over 24 hours on 20th August, overshadowing stalwarts of the crypto ecosystem like Uniswap and Bitcoin.

$1.5 million in transaction fees in just over 24 hours

About Friend.tech

Introduced in its preliminary beta phase on August 11th, Friend.tech grants its users a unique opportunity: the ability to tokenize their social connections. The concept involves buying and selling “shares” of their social network contacts. Upon purchasing another person’s share, individuals can initiate private conversations with them. For every transaction facilitated on its platform, Friend.tech imposes a 5% fee, a portion of which translates to profit for the owner of the respective shares.

Friend.tech is built upon Coinbase’s advanced layer-2 Base. Recent data from DefiLlama paints an impressive picture of the platform’s traction in its nascent stage. In the last 24 hours, it has recorded an impressive $1.4 million in fees, and since its inception, the accumulated fees have surpassed $4 million. Friend.tech has also amassed an overall revenue of $2.1 million while writing this. Furthermore, the platform has witnessed a flurry of activity, clocking in over 795,000 transactions and attracting the participation of over 70,000 distinct traders.

Brains Behind Friend.tech

The enigmatic developer pseudonymously known as “Racer” is believed to be the intellectual force behind this project. A senior software engineer at Coinbase has shed light on Racer’s previous ventures, which include pioneering social media networks like TweetDAO and Stealcam.

Intriguingly, both these platforms also revolve around utilizing nonfungible tokens (NFTs). However, Friend.tech appears to have a vision of engaging crypto influencers with expansive follower bases, thus enabling them to reap the benefits from trading fees. Additionally, the platform aims to serve as a one-stop solution for Web3 projects that are looking to strengthen their associations with venture capitalists and influential figures in the crypto domain.

Pouring Opinions on Friend.tech

The meteoric rise and promising trajectory of Friend.tech has not gone unnoticed. Pundits and decentralized finance researchers, including a notable figure known pseudonymously as Ignas, have begun dissecting the platform’s revenue model. Ignas thinks that the primary revenue source for Friend.tech currently hinges solely on trading fees, with no apparent benefits arising from an increased shareholder count. He further hypothesized that personalities who court controversy might find themselves able to earn more, and spreading FUD, i.e. (fear, uncertainty, and doubt) might become a strategic maneuver to amplify fee earnings.

Lux Moreau, founder of Talk. Markets also had his say on the platform’s operating model, suggesting how the increase in share prices could lead to smaller alt-group formation within the Friend.tech ecosystem.

1/6 Curious about @friendtech's share pricing model?

Here's the scoop: Fees? 5% flat for the protocol, the buy/sell spread is the owner's profit.

But here's where it gets interesting: As outstanding shares grow, the pricing skyrockets exponentially. 🚀
— Lux Moreau ✨ (@MentionLux) August 12, 2023

For those keen on exploring Friend.tech, it is essential to note that the platform is still in its beta phase. Access is somewhat exclusive, necessitating an invite code for sign-up. Moreover, a prerequisite balance of a minimum of 0.1 ETH is mandatory to navigate and engage with the platform’s functionalities.

Considering its unique approach to social networking combined with the lucrative prospects it extends to its user base, Friend. tech undoubtedly promises to be an exciting avenue for crypto enthusiasts. It remains to be seen if the platform can maintain its momentum and emerge as a premier DeSo network.

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