Friend.tech, a social tokenization platform built on Base, has achieved a significant milestone with a $50 million Total Value Locked (TVL) as of September 3, 2023. This groundbreaking project empowers users to create and trade their own tokens based on their social influence.
According to data from Dune Analytics, Friend.tech has been consistently generating around $1.1 million in fees daily since September 8, 2023. This surpasses the fees generated by other prominent crypto platforms such as Bitcoin, Opensea, and MakerDAO.
Friend.tech’s Growth and Revenue
Friend.tech was launched on August 10, 2023. It swiftly gained popularity among crypto enthusiasts and influencers. the project has attracted remarkable TVL growth, establishing itself as one of the largest projects on Base. The platform’s high demand for keys has subsequently generated significant trading volume and fees.
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The protocol stores its revenue in an externally owned account (EOA), accumulating over 11,000 ETH ($18 million) as of September 3, 2023. Despite this substantial amount, there have been no expenditures from the address yet, resulting in raised questions regarding treasury usage and governance.
Key Fees and User Challenges
Friend.tech offers a unique and exciting opportunity to monetize social media interactions. However, it presents challenges and risks for its users. One such challenge is the minimum deposit requirement of 0.01 ETH (~$20) to create a key, which may discourage potential users from joining the platform.
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Moreover, in order to break even, a user would need at least eight traders purchasing their key—an arduous task for less popular or new creators. Another hurdle is the uneven distribution of earnings among key creators.
Statistical data indicates that amongst all royalties distributed, the top 30 creators have claimed 15% while around 183,657 users possess fewer than two circulating keys – earning an average income below $1.
Nonetheless, there are opportunities for Friend.tech users to expand their audience and income on the platform as well. For instance, they can participate in the referral program when inviting new users to earn them rewards—a percentage of their key transactions.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
