Friend.tech: A Promising, but Controversial Decentralized Social Media App
Friend.tech, a decentralized social media app, has made waves in the crypto industry over the past two months. Since its launch, the platform has experienced both highs and lows. It began by rivaling top cryptocurrencies like Bitcoin and Tron in terms of trading fees, but soon faced criticism and was even labeled as dead. However, it has now made a remarkable comeback, reaching a new all-time high in Total Value Locked (TVL). This rollercoaster journey has certainly been eventful for Friend.tech.
Recently, AMLBot, a platform that helps users detect illicit funds in crypto wallets, released a report diving into the details of Friend.tech. The report aimed to explore whether the decentralized social media app presents a viable investment opportunity.
The Positive and Negative Aspects of Friend.tech
Friend.tech is built on Coinbase’s Base scaling network for Ethereum. The platform offers users the ability to trade tokenized shares of other users’ profiles using ETH. According to the report, this business model is worth considering for investment. Friend.tech charges a 10% fee for every purchase of “keys,” which were previously known as shares. Out of this fee, 5% goes to the account whose shares were bought. As of now, Friend.tech has generated trading fees amounting to over $240.3 million.
The user base of Friend.tech is diverse, as demonstrated by the varying degrees of gains and losses. According to AMLBot, the average return on investment for users is 127.44%, with earnings of around $405.5 in US dollars. The top users have made as much as $254,000. However, there have also been users who lost approximately $6.3 million, highlighting the potential downside.
What’s Next for Friend.tech?
The profitability of Friend.tech primarily depends on users’ ability to bet on profile shares that can yield a profit. Data has shown that the platform has been profitable for the majority of its users. A substantial number of wallets, around 27,800, have earned between $0 to $100 on Friend.tech. Additionally, 684 wallets have earned between $10,000 to $100,000. On the other hand, there have been nine wallets that suffered losses exceeding $100,000.
Friend.tech’s growth has surpassed that of other decentralized social media platforms, showcasing how quickly a crypto product can gain traction with a strong market fit. While the platform has demonstrated its potential for gains, analysts have also expressed skepticism, comparing it to a Ponzi scheme.
Concerns about Security
With a user base of 233k users, Friend.tech’s popularity is evident. However, one of the core developers behind DeFiLlama has raised concerns about the platform’s security. They argue that a breach into Friend.tech would be more devastating than the previous Balancer hack, as users can lose funds by simply opening the app.
Friend.tech seems to have a promising future, but not without its controversies. As with any investment opportunity, users should carefully consider the risks and make informed decisions.
Sources:
– Averaging trading fees rivaling top cryptocurrencies.
– Labeled dead just a few weeks after launch.
– Making a tremendous comeback to a new all-time high in TVL.
– AMLBot’s report on Friend.tech.
– Built on Coinbase’s Base scaling network for Ethereum.
– Positive and negative aspects of Friend.tech.
– User diversity and potential gains and losses.
– Friend.tech’s profitability and user earnings.
– Skepticism and comparisons to a Ponzi scheme.
– Concerns about Friend.tech’s security.
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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