Friend.tech's Remarkable Revenue Surge Indicates Sustained Interest Despite Criticisms
Summary:
Despite criticism and predictions of failure, decentralized social media platform Friend.tech, based on Coinbase's Base protocol, continues to show strong growth. According to data from Dune Analytics, it reported a significant surge in revenue to 10,663 ETH and a rise in Total Value Locked (TVL) to over 30,000 ETH on October 2. The platform, launched in August 2023, allows users to swap "keys" associated with X accounts, enabling access to exclusive in-app content and offering shares purchase in friends or influencers. However, concerns over Friend.tech's revenue model and rapid share price increase have sparked skepticism. Despite this, record revenue and user growth indicate sustained interest in the platform.
Friend.tech, a decentralized social media platform built on Coinbase’s layer-2 Base protocol, has attained remarkable revenue growth and a spike in the total value locked (TVL) on its platform. Data sourced from Dune Analytics revealed that as of October 2, Friend.tech's revenue escalated to 10,663 ETH, while its TVL ascended beyond 30,000 ETH. This revenue and trading surge occurs while the initial excitement around its launch decreases.
Launched in August 2023, Friend.tech is a unique decentralized social network that allows users to swap X account-associated "keys" (formerly Twitter) owned by their friends or notable influencers. These keys grant users the ability to access exclusive contents in in-app private chatrooms from the X account holder. Additionally, users also have the privilege to purchase shares in friends or influencers on the platform.
While this innovative decentralized social network platform, with its unique revenue distribution model, is celebrated by numerous entities in the Web3 ecosystem, it has not escaped criticism. There has been some skepticism concerning the mechanism of monetization of the platform's group chat feature, specifically the pricing method which some point to as potentially exploitable.
Despite launching only a few months ago, the platform has repeatedly been labelled as "doomed to fail". Some market commentators have expressed doubts about the platform's revenue scheme. They predict that the initial appeal might lose its appeal after 6-8 weeks. There have been arguments that the fast-paced increase in share prices in the early weeks is untenable in the long run.
Despite these criticisms, the Friend.tech platform continues to experience unprecedented revenue escalations and user growth. The most recent revenue surge corresponds with the user base's increasing communication transactions, which soared to over 9,200,882. Although the current trading volume is slightly below the unprecedented increase witnessed in the first week of September, the consistent revenue and TVL growth indicates a sustained user interest in the platform.
Published At
10/2/2023 9:04:35 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.