Friend.tech, a decentralized social media platform built on Coinbase’s layer-2 protocol Base, has recently achieved remarkable growth in terms of revenue and total value locked (TVL) on its platform. According to data from Dune Analytics, the platform’s revenue has surged to 10,663 Ether (ETH), and its TVL has exceeded 30,000 ETH as of October 2nd. These impressive numbers come at a time when the initial hype surrounding Friend.tech’s launch has subsided.
Launched in August 2023, Friend.tech offers users the ability to swap “keys” associated with X accounts (formerly Twitter) belonging to their friends or influencers. These keys provide users with access to private in-app chatrooms and exclusive content only available to the corresponding X user. In addition, users can buy shares of their friends and influencers on the platform, creating a unique revenue-sharing model.
While many in the Web3 community have applauded the concept of a decentralized social network platform with a revenue-sharing model, Friend.tech has also faced criticism. One critic raised concerns about the functionality of the platform’s group chat feature, noting that creators can make money from a chat that doesn’t even work properly. Others have criticized the platform’s pricing structure, suggesting that it can be easily manipulated and potentially subject to pumps and dumps.
Despite these criticisms, Friend.tech has defied expectations and continued to experience significant growth in revenue and user activity. The platform has been declared “dead” on several occasions since its launch, with some commentators predicting its demise within weeks. However, the recent record surges in revenue and user growth demonstrate that Friend.tech is still attracting users and gaining traction in the market.
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The surge in revenue for Friend.tech is particularly impressive given the decline in trading activity on the platform. While the number of communicative transactions on the platform has decreased from its peak in the first week of September, the steady growth in revenue and TVL indicates that users are still actively engaging with the platform and contributing to its success.
Friend.tech’s success can be attributed, in part, to its unique value proposition in the social media space. By offering users the ability to access exclusive content and participate in revenue-sharing opportunities, the platform provides a compelling incentive for users to join and actively engage with the community. Additionally, the decentralized nature of the platform resonates with the growing demand for privacy and control over personal data in the digital age.
Looking ahead, Friend.tech will need to address the criticisms levied against it and ensure that its platform continues to provide value to its users. Improving the functionality of the group chat feature and implementing measures to prevent price manipulation will be crucial steps in maintaining the platform’s credibility and sustainability.
In conclusion, Friend.tech has experienced significant growth in revenue and TVL since its launch, despite facing criticism and skepticism from some in the crypto community. The platform’s unique revenue-sharing model and its ability to offer exclusive content and access to influential individuals have contributed to its success. As Friend.tech continues to innovate and address the concerns raised by its critics, it has the potential to solidify its position in the decentralized social media landscape and attract an even larger user base.
