veDAO Research Institute: Is friend.Tech a new social idea or a flash in the pan?

Base, which was discussed in the previous veDAO Research Institute article, has recently become a new hot topic: a SocialFi DApp called Friend.Tech has triggered a new craze. A total of $175 million in cryptocurrency has been transferred to the platform since Base’s inception, with nearly 580,000 transactions recorded on Aug. 10. On the same day, the number of daily active users of Base reached a record high of 136,000. And all this is mainly due to Friend.Tech, an invitation-only Base native Web3 social DApp.

The revenue of Friend.Tech exceeded 500,000 US dollars in two days after it was launched. Through the same one for three invitation code mechanism as Clubhouse, Friend.Tech has become the most popular Socialfi project in the Base ecosystem, and it is also the Web3 project that has attracted a lot of attention recently. According to the CryptoKoryo data panel, as of 20:30 on August 19, about 10 days after its birth, friend.tech’s transaction volume has exceeded 11,000 ETH, the number of independent users has exceeded 39,000, and more than 518,000 transactions have been completed. The Paradigm effect is also powerful enough. After the announcement of the financing news, friend tech’s active users grew rapidly, with more than 1.7k buyers in a single hour, setting a record high. In this article, let’s learn about Friend.Tech together.

What is Friend.Tech?

The hard-to-find Friend.Tech is a DApp based on the Base ecosystem. It is strongly bound to Twitter, allowing users to buy and sell the shares of any user on Friend.tech through the Ethereum of the Base chain. Investors of KOL shares will have the right to have a direct dialogue with KOL. It allows users to buy and sell shares of related Twitter accounts, and owning a stake in a KOL grants users access to that KOLs private chat room.

The essence of Friend.Tech is to bet on the influence of KOLs, and it is a KOL tokenization project. It is equivalent to Friend.tech issuing coins for KOL, which are tokens of personal IP; in this way, monetizing the value of KOL can also be regarded as an attempt to quantify social value.

According to data from Dune Analytics, Friend.Tech has brought in 7,860 users, 4,400 Ethereum ($8.1 million), and more than 126,000 transactions in less than 24 hours since launching the beta version, far exceeding OpenSea’s total. The transaction volume at the same time; on August 10, the number of daily active users of Base reached a new high. Friend.Tech broke through 1.8 accounts within 4 days of its launch, with a weekly trading volume of 6,900 ETH, and Share’s royalty income exceeded 300 ETH.

Background on Friend.Tech

Racer is one of the creators of Friend.tech. He previously created TweetDAO, a DAO organization that granted access to his Twitter account by holding an NFT called the TweetDAO Egg.

Later, Racer and Shrimp, another co-founder of Friend.tech, created Stealcam, a photo-sharing application based on the Arbitrum ecosystem. On Stealcam, users can upload pictures, and the pictures will be mosaic. Other users need to steal (open pictures) to view the original pictures. Each steal will increase the price according to the rules. This design combines curiosity, celebrity effect, Twitter communication and owner economic model, so that the project itself has high-strength self-communication attributes.

In the end, the developers decided to reshape Stealcams positioning and created a project called Friend.tech. Shrimp and Racer originally planned to deploy the project on Arbitrum. Perhaps based on market popularity, they finally chose Base; so there was Friend.tech is on fire today. Friend.tech goes a step further than previous products, bringing social attributes and cryptocurrencies together. In this way, KOLs and ordinary users on Twitter can build social tokens for cash.

How does Friend.tech work?

Every user who registers on Friend.tech needs to link their account with Twitter. In this way, a users Twitter account will be quantified as social tokens on Friend.tech, and other users can use ETH to purchase shares of these tokens, which represent the users popularity and interaction on Twitter. equity.

Similar to other digital assets, the value of these shares fluctuates. Lets say you buy a users shares at a certain price, and then the floor price (minimum price) of their shares goes up shortly after. You can choose to sell your shares at a higher floor price, potentially making a profit. Conversely, if the floor price is lower than the price you paid for it, you can choose to hold it or sell it at a loss. All transactions are recorded and viewable on-chain. Each trade, whether buying or selling, adds an additional 10% in fees: 5% goes to the protocol and 5% goes to the holder of the shares being traded.

@functi 0 nZer 0 tweeted about Friend.techs stock price pricing model (which has yet to be officially confirmed), which reveals that it is a simple supply and demand structure. The quadratic relationship is used to determine the number of shares held by an individual and the price of the next share. The price of each share changes exponentially as the number of buyers increases. The formula is: Price in ETH = Supply ^ 2 / 16000. *Where Supply represents the current number of shares owned by an individual. Points incentive is an important means for friend tech to turn Twitter users into core users of the application. It uses potential token airdrop expectations and provides tangible points to motivate users. Friend Tech will distribute a total of 100 million points during the next 6-month test period, once every Friday, and the points record will not be uploaded to the chain. On August 19th, friedn tech completed its first points airdrop.

How to use Friend.Tech

1. Access the platform

Start by opening the friend.tech website in your mobile browser. Once on the site, click the Share button on your browser menu; then select the Add to Home Screen option. Then open the friend.tech app on your phones home screen.

2. Register and fill in the invitation code

• Once you open friend.tech, sign up (you can log in through Google or the App Store). After the registration is completed, the user needs to fill in the invitation code to obtain the full right to use. Users typically receive three invite codes, which they can share with others.

• set up account

After filling in the invitation code, the user needs to bind his Twitter account and enter 0.01 ETH based on Coinbases Base chain into the address to activate the account. You can go to the official Base cross-chain bridge, connect your wallet and transfer your mainnet ETH to the Base chain. Once you have the ETH of the Base chain in your account, you can claim your 3 invitation codes.

3. Buy shares and chat

• After entering the App, you can see the current hottest users on the homepage and buy their shares. At the same time, you can also search for users you are interested in and buy their shares. Before purchasing, a lock icon will appear on the chat interface after clicking on the user, prompting the user to purchase shares. And when the purchase is complete, you can chat one-on-one. Friend.tech In order to prevent spam, each holder can send three messages, and then wait for the other party to reply and reset the upper limit.

• withdraw

If you have successfully earned money and wish to withdraw your funds, tap your profile within the app to withdraw your ETH to your own address. Use the Base cross-chain bridge to transfer your funds back to the mainnet for further use or transactions.

Issues to be aware of

Although Friend.tech has experienced exponential growth in the 24 hours since its launch, many crypto KOLs have also begun to make profits, and its popularity and discussion have remained high, some people have expressed concerns about the platforms pricing model and data privacy.

Friend.tech’s PC-side website currently directs users to download the app on their mobile devices. There is very little information about the project on this one-page website. There is no common information about Web3 projects such as the projects roadmap, founders or white papers. At the same time, the privacy policy link displayed on the page only displays Coming soon!.

At the same time, the user experience of Friend.tech is not friendly. On its first day, the app experienced network outages due to an influx of users, as more KOLs signed up for the platform and many users complained of lag and app crashes. In fact, Friend.tech is more like a variant of NFT gameplay than a new social product, and the logic behind it is actually the holding logic of NFT: users are optimistic about a certain KOL and think that the KOL’s views are helpful to them. Or the KOL community is active and its share will increase in the future before choosing to hold it. But this means that how to screen high-quality KOLs has become the most critical decision-making consideration for users. Just like choosing a suitable target from the countless NFT products on Ordinals, users in Friend.tech must first know which accounts on Twitter are active and which accounts can easily build a community. Users are required to observe the reading volume of Twitter KOL tweets in advance for analysis. It is worth noting that at present, most of Friend.tech is still dominated by European and American KOLs, and Chinese KOLs are relatively weak. After completing a simple screening and selecting high-quality KOL targets, users still have to identify which KOLs are willing to operate Friend.tech for a long time and which KOLs are just here to join in the fun and leave. Generally speaking, Friend.tech gives users’ attention at a cost in a disguised way. If you want to obtain more high-quality information, it means you need to invest equivalent assets. But each users attention is very limited, if too much attention, it will bias the industry judgment. Therefore, Friend.tech itself has an upper limit of user attention, and this has become to some extent the development of the Friend.tech product itself.

Conclusion

The SocialFi track has been continuously watched by the encryption world, but so far no leading project has emerged. With the popularity of Friend.tech this time, will the concept of Web3 Social and related projects become popular again? Friend.tech will be A short-lived hot spot, or will it be a long-term success? This issue will take time. As with any Web3 innovation, Friend.techs future will depend on its ability to adapt, grow and continue to provide value to its users. And the delicate balance between social interaction and investment potential may play a significant role in determining its longevity.

Reference: @functi 0 nZer 0 Speculated price function source:

https://docs.google.com/spreadsheets/d/1AW6by8ZXqD1vV3z4TfC8N7SZwt8RD-lFT-G9_hGMdPk/edit#gid=0

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