- Friend.tech’s revenue reaches over 10,663 ETH, with TVL exceeding 30,000 ETH.
- Critics question the platform’s sustainability, predicting its downfall.
- Communicative transactions on the platform surged to 9,235,503.
The crypto world is filled with paradoxes, not the least of which is friend.tech. Launched in the second week of August, the platform has witnessed exponential revenue growth, even as critics forecasted its imminent downfall. This has led many to question what is behind the platform’s explosive growth.
Friend.tech Revenue Soars Past 10,000 ETH
Friend.tech, a decentralized social media platform hosted on Coinbase’s layer-2 protocol Base, has achieved remarkable milestones since its inception in August 2023. On Monday, October 2, the platform’s revenue had soared to 10,663 ETH, with communicative transactions surging to 9,235,503. This led to the platform’s Total Value Locked (TVL) reaching over 30,000 ETH.
The platform has achieved this growth despite rising concerns about its revenue model, with critics repeatedly declaring the platform dead. Notably, friend.tech allows users to swap “keys” linked to 𝕏 accounts of friends or influencers. These keys grant access to exclusive in-app chatrooms and content.
Moreover, users can purchase these the ‘keys’ of their friends and influencers, trading them as speculative assets. This model and its implementation have raised concerns among users.
Friend.tech’s Model Under Fire
For one, crypto journalist Collin Wu pointed out that much of the revenue went to just a few speculators. According to data, more than 450 sniper bot wallets have earned $5.9 million, which accounts for 34% of the platform’s revenue.
Other detractors claim that speculation, rather than real use cases, is fueling the surge in revenue. “Sounds more like people just buying a claim to nothing” one Reddit user pointed out.
For now, the criticism is drowned in a wave of promotion. Specifically, 𝕏 search results for the term are inundated with would-be crypto influencers promoting their friend.tech page.
On the Flipside
- Despite consistent revenue growth, friend.tech has seen a dip in trading volume since the first week of September.
- friend.tech is one of the platforms fueling the rapid growth of Coinbase’s Base layer-2 blockchain.
Why This Matters
Friend.tech’s model, its successes, and challenges provide a case study for the potential and pitfalls of decentralized social media platforms in the crypto space.
Read more about the Base’s growth, fuelled in part by friend.tech
Trouble for Solana? Why Coinbase’s Base Took Its Place by TVL
Read more about Solana’s alleged speed upgrade:
Did Solana Upgrade? Blockchain Data Reveals the Real Picture