Is Friend tech, the crypto social media app, a scam?

However, some within the crypto community have already looked into the history of the known online pseudonyms behind Friend.tech and there are already red flags. Members of the team behind Friend.tech were allegedly also behind a project called Kosetto, which sold wearable NFT stickers. Then, suddenly, in early 2023, the project was abandoned, without notice to users who had invested. As you embrace the digital connectivity of Friend.tech, why not expand your horizons in the world of online investing?

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Friend.tech is an on-chain social networking platform built on Coinbase’s Layer 2 blockchain, Base. The platform empowers users to tokenize their identity by selling and buying keys (previously known as shares) of themselves to their followers. The whole point is to sell and buy actions that are part of the user’s holdings to chat with them or to access preferred content.

In addition to this, according to data from Defi Llama, Friend.tech has generated $6.64 million in fees since its beta launch. With the anticipation of the $FRIEND token airdrop and the Version 2 upgrade, the platform is attracting a surge of users keen on maximizing their points to qualify for valuable governance tokens. While engaging with Friend.tech, users should be mindful of privacy risks and implement recommended security measures. There are a number of reasons why others in the crypto community may approach Friend.tech with caution. For one, as with any relatively new crypto platform, the potential for manipulation of various kinds could be high.

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1. Conversely, a few critics have also raised red flags against the decentralized social media network.
2. Supporters view social tokens as a probable key driver of Web3 adoption and an important way to bring newbies to the cryptocurrency world into the fold.
3. Users are able to earn points for buying and selling keys, as well as other on-chain actions.
4. As more users join and engage on the platform, the value and utility of the social tokens (keys) may increase, fostering a vibrant and economically incentivized social ecosystem.
5. Firstly, users aren’t required to download the app through an app store account, which emphasizes decentralization.

Two weeks after its launch, Friend.tech earned a reported $1 million in fees, equivalent to 5% of the value of each transaction, in a single 24-hour period. That translates to more than $700,000 in ether revenue after accounting for gas fees and other costs in just a day. Each user on the app has a chat group akin to ones found on platforms like Telegram. The catch is that users must purchase keys in order to enter other users’ private chats. They can later choose to sell those keys if they decide to leave the chat. Friend.tech is a hot yet continuously controversial social trading protocol.

Friend.tech Price Live Data

When you first look at Friend.tech, it may seem similar to other messaging platforms such as WeChat or Telegram. However, the unique aspect of the decentralized social media application is the process of joining and leaving group chats, which is the core feature of this platform. Friend.tech is a decentralized social app on the Base network that allows creators to connect with their audience in a personalized way by monetizing their influence through tokenized attention. Creators’ influence is quantified into “keys,” which followers can purchase to gain exclusive access to private chatrooms and other perks offered by the creators.

The last four days alone have witnessed an impressive upswing, with user numbers soaring by ~120%. When there aren’t many shares out there, this difference as a percentage of the selling price is quite big. So, if you buy shares from someone who has just 1 or 2 shares and quickly sell them, you might end up losing a good part of your money.

Additionally, early participants in the project will also benefit from lower KEY prices as they join in the initial stages. Friend.tech generated extensive discussions among Twitter’s KOL community upon its initial launch, and its hunger marketing tactics have further fueled this trend. When everyone is talking about Friend.tech’s invitation codes, it becomes the best advertising tool in itself.

When users enter the application, they can see the currently most popular users on the homepage. They can also search for users they are interested in by using the explore button and purchase their KEY. The initial price of each user’s KEY is determined based on Twitter data, and there is no limit to the supply of KEYs.

Why Trade FRIEND on Morpher?

The selling price is actually the buying price minus what you want to sell it for (like the buying price for the 199th share). The concepts underpinning BitClout and friend.tech share striking similarities. Every transaction within friend.tech is recorded on the blockchain, leaving no room for concealment. For the Friend.tech project, receiving the favor of Paradigm, a top investment fund in the cryptocurrency industry, is undoubtedly a huge advantage. Even before the project was fully developed and when there was a lack of detailed project whitepaper, the market still had confidence in the project.

For one, some users realized that this gave the Friend.tech account certain permissions to their X account — like the ability to post and retweet on their behalf. It has all the other classic schemes usually connected to crypto projects as well, such as a fee-sharing mechanism and airdrops to reward users. Friend.tech understands the importance of user satisfaction and goes the extra mile to provide a seamless experience. The Friend.tech app is accessible only via mobile devices and isn’t available on traditional app stores. Users must visit the Friend.tech website, save it to their home screen, and use an access code to register. Once registered, they can trade shares of other users, with prices fluctuating based on demand and supply.

Drawing insights from data sourced from the Base chain on Duneanalytics, the friend.tech treasury has already amassed an impressive 1984 ETH (~$3.4m). The price of each share depends only on the number of shares already out there. The reminiscence of an old project, BitClout, comes to mind when thinking about friend.tech.

In this way, Friend.tech can be seen as a social media platform—or, perhaps more specifically, a sort of offshoot of X. Popular Twitter users have previously found success (and sometimes legal trouble) by using the platform to sell tokens that they themselves launched or which they’ve been paid to promote. Sometimes these users how do you calculate rent revenue would incentivize the sale of these tokens by linking them to exclusive content. Its core concept is to transform the user’s influence on Twitter into tradable tokens, allowing users to earn income through social influence. ETH is the main currency the application uses to purchase other users’ KEY.

If you buy a user’s tokens, you can communicate with them directly, and now this new asset will be part of your portfolio. If someone buys your token “keys,” this trade will boost your token’s price, and you can cash out that money through any Base wallet and then bridge it out to ETH. In this early stage, the users need an invitation to start using the DApp, leading to a fear of missing out on the fever boosting the stats. Users discover Friend.tech and then have to reach out friends or other users to gain access to it. Users must install an app, log into it using their own Ethereum wallet, and deposit ETH to their Base account using a bridge. One issue is that, at this early stage, the app is still buggy, plus the bridges to deposit in Base are slow and sometimes broken.