This phenomenon could potentially create incentives for smaller interest groups to form within the platform or even lead to the emergence of alternative sub-groups. In the background, there’s a mysterious individual known as Racer, believed to be the mastermind orchestrating all of this. Racer has also been behind other networks like TweetDAO and Stealcam, leveraging sophisticated digital technologies. Still, most funds are part of what stats aggregator Dune calls insiders, with major developers and other people related to the project being the most significant stakeholders. FTX, the failed crypto exchange founded by Sam Bankman-Fried who currently sits in jail while he awaits trial for multiple charges of wire fraud, securities fraud, and money laundering. The crypto-centric VC fund invested $278 million in the exchange, which it later told investors was now worthless.

Friend.tech’s current approach centers exclusively around trading fees, without involving additional stakeholders or shareholders. Certain provocative individuals might exploit this setup to generate higher profits. This could involve using strategies such as spreading fear, uncertainty, and doubt (FUD) to manipulate the situation and increase fees. He identified three key factors that make the app a significant breakthrough for cryptocurrency. This factor adds a dynamic layer by fueling social engagement with an opportunity to invest.

1. ETH is the main currency the application uses to purchase other users’ KEY.
2. Currently, the functionality is relatively limited, only allowing users to have friends and join group chats, without the ability to send or receive pictures, videos, and so on.
3. The platform thrives on a 10% fee levied on transaction volumes, of which 5% is thoughtfully directed to the individual owning the friend share.
4. But if you try to sell your Cobie shares when there are 200 shares already, you’d only get 2.47 ETH for each share.
5. Beyond a mere social platform, friend.tech is a paradigm shift, a high-signal information aggregator fueled by the discerning judgments of its participants.

As more people hold KEY, the price that the next person entering has to pay to buy Keys increases. However, the number of holders also increases or decreases with buying or selling. This means that in the case of insufficient subsequent purchases, from the moment of buying KEY, a loss of 10% has already operating activities definition occurred without considering selling taxes.

Individual users make fees each time keys to their private chats are bought or sold. After a few minutes of setting up your account, you may be lucky enough to have “keys” to your chatroom “bought” by other users or even bots. 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. Based on typical user behavior in the cryptocurrency industry, social interactions also decrease.

Is It Time to Board the Friend.tech Hype Train?

This can lead to stagnation or a regression to an inactive state for once thriving communities. Friend.tech’s ingeniously designed incentive rules have fundamentally eliminated low-quality user accounts. Its early users and current promoters are all opinion leaders in a certain field, and these KOLs have a large and sticky fan base. In the field of social products, projects that are highly anticipated in the market, such as Deso and Lens, often face the problem, that is, it is easy for a single user to have multiple accounts.

What Is Friend.Tech and Should You Believe the Hype?

However, it is crucial to mention that the Friend.tech protocol imposes a 5% transaction fee, and the owner earns profit from the trade spread. These steps will prepare you to explore and engage with the innovative features Friend.tech offers on the decentralized social media landscape. This is a crypto project, so know that at the heart of this is a product that encourages highly-volatile speculation. Furthermore, while some will certainly make money off this, like most products in the crypto space, it’s unlikely to be those outside of the tightly-knit crypto-influencer circles. Friend.tech basically provides each user with their own Telegram-like chat group. In order for others to enter a user’s private group chat, they need to buy shares in that user.

From the number of transactions, it is more evident that on-chain transactions have become more active after August 18th. Filter your search by ‘most recent’ to get codes that are likely still available (not expired) as each code only works once. To fully engage with the Friend.Tech community, you’ll need some ETH (Base) in your account. Leveraging Layer 2 technology, embracing the concept of progressive web apps, embedding wallets for seamless initiation — these facets create a synergy that marks friend.tech as a groundbreaking fusion.

Airdrops

A slew of personalities outside of crypto circles on X joined Friend.tech. Richard “FaZe Banks” Bengtson II, co-founder of the influential esports community FaZe Clan, joined the platform late Sunday and saw his share prices quickly become among the most expensive. Shares of NBA player Grayson Allen also surged in the hours after joining. The shares grant the holders privileges, such as the ability to send private messages to the sellers. Users can employ bots to track and snipe (buy and sell) keys on their behalf, potentially earning money from the price differences in these transactions​.

Finally, the app lets users deposit their ETH once and buy and sell shares without repeatedly signing transactions. Many decentralized applications in the crypto space have been criticized for requiring constant verification of transactions through MetaMask signatures. With Friend.Tech riding the decentralized social media wave, attending blockchain or crypto-related events might put you in the same room (virtually or physically) with existing users. 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. Friend.Tech is one such platform — a decentralized social media app focusing on the tokenization of social interactions. Since its launch on August 10, 2023, Friend.tech has quickly become one of the top dApps on Base, boasting over 170,000 ETH in volume and 16,000 ETH in protocol fees.

With all the hype around this new social media platform and every racing to get on the bandwagon, getting your hands on a Friend.Tech invite code can feel like holding a golden ticket. Friend.tech’s remarkable technological twist comes to the fore through its foundation on Coinbase’s new tech; Base. At the heart of its financial framework lies a distinctive fee structure that amplifies both user incentives and platform growth. The platform thrives on a 10% fee levied on transaction volumes, of which 5% is thoughtfully directed to the individual owning the friend 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. Scammers have already descended on Friend.tech after seeing how quickly it has blown up. Multiple phishing campaigns have already spread, attempting to trick users into signing up for a fake airdrop scheme which would then effectively drain their crypto wallets. So far, some crypto influencers have publicized that they’ve earned dozens in ether.

ETHDYDX

However, Friend.Tech is very out-of-the-box and is something most people are not used to. This can indirectly translate to “short-lived hype.” It will be interesting to see if this platform stands the test of time. Once set up, users could have their chatroom keys bought by other users or even bots. Keyholders then have the ability to communicate directly with the user whose keys they hold.

This phenomenon inevitably accelerates the bubble-forming process of the product. 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. It connects the price of the user’s KEY to the market supply and demand relationship, which means that the more popular the user, the higher the price of their KEY. The surge of decentralized social media  represents a transformative phase in mass social interactions.

This was followed by reports of its early demise, which was in turn followed by a sudden surge in popularity. There’s a new trend in Base, the second-layer solution built by Coinbase COIN to help scale Ethereum ETH . Coinbase’s chain reached a historic record of 15.88 transactions per second on August 21, according to l2beat data.

Aleem Alam

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