To fully engage with the Friend.Tech community, you’ll need some ETH (Base) in your account. Our platform earns commissions through partnerships and sponsors, which is how we support our analysts. With market cap down 98% and TVL down 94%, Friend.tech’s September 2024 contract burn sealed its fate. Once SocialFi’s brightest star, Friend.tech now serves as a cautionary tale. Despite these issues, Friend.tech gained early credibility from major venture capital support, including undisclosed funding from Paradigm in early 2023. Sadly, the later burning of the platform’s contract in September 2024 has left existing vulnerabilities unaddressed and made future updates impossible.

Holders can’t see each other’s messages, so it can seem like the creator is talking to himself or herself. Friend.tech charges a 5% protocol fee on each transaction, plus a 5% fee that goes to the share issuer. Since around $7.8 million in fees have been collected so far, the founders of friend.tech have earned around $3.9 million — though hopefully most of it will be used for project development.

Tokenizing Friends: A New Frontier

Users must install an app, log into it using their own Ethereum wallet, and deposit ETH to their Base account using a bridge. One issue is that, at this early stage, the app is still buggy, plus the bridges to deposit in Base are slow and sometimes broken. As your X account might be a popular interface for hackers to use, it is better to head over to the settings and security and disconnect “X” from the connected app module. Many users have also tweeted about disconnecting Twitter accounts for the sake of improved privacy.

Important Considerations When Trading FRIEND

In other words, the more popular your keys are, the more each new buyer will have to pay. So far, the only practical utility such “keys” have is to provide access to a private chat with the crypto personality who issued them. In this sense, frenetic trading in friend.tech shares is reminiscent of the Bitcoin Ordinals and BRC-20 craze in March-April 2023. There’s a new trend in Base, the second-layer solution built by Coinbase COIN to help scale Ethereum ETH . We are talking about Friend.tech, one of the hottest projects in Base. Coinbase’s chain reached a historic record of 15.88 transactions per second on August 21, according to l2beat data.

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Once this step is completed, you’re ready to dive into the world of Friend.tech. To join the Friend.tech community, you’ll need an invite code from an existing user as the platform is currently in beta. These codes can be found through existing Friend.tech members or on platforms like X or Reddit. It has a “withdraw ETH” button, allowing creators to send crypto back to their wallets. It might be one of the most reassuring features of the application so far.

What are the potential risks of participating in Friend.tech?

• It’s a protocol of social tokenization, and its application reached more than 100,000 users just a few days after its release on August 10.
• The creator earns a 5% commission on each sale, and 5% more goes to the protocol.
• The initial share purchase price is determined by various factors, including their follower base, engagement, and overall influence.
• In this early stage, the users need an invitation to start using the DApp, leading to a fear of missing out on the fever boosting the stats.
• Each member of the platform currently is provided with three invite codes to give out.

Friend.tech essentially how to buy tiger king coin allows anyone on the app to bet on the social worth of other users on the platform, through the purchase of shares of the other user. Though friend.tech activity has cooled down considerably, it’s still too early to say that most of the hype has died down. As the platform continues to distribute airdrop points, it will likely attract more users. Kaleo noted that every Friday there is an influx of new users and influencers as the airdrop distribution is shilled on Twitter, and prices also rise.

• Once the deposit has been confirmed, you are prompted to buy your own key first in order to start using the platform.
• By comparison, building societies are owned by customers, who are known as «members».
• Once these steps are completed, you must deposit at least 0.01 Ethereum (ETH) into the Base network.
• Otherwise, you run the risk of being exposed to potentially devastating data breaches and fraud.
• Before we delve deeper into what sets Friend.tech apart, let’s understand how this innovative platform operates.

Once you are inside, you can start by buying your share, which will allow people to buy additional shares, 5% of which will return to you. Firstly, friend.tech received a $50 million Series A round funding from Paradigm with the valuation pitch bringing in token warrants. And token warrants being part of valuation decks usually translate to token launches and, eventually, airdrops. Also, airdrop discussions often bring in more users and revenue, which is good news for both friend.tech and Paradigm. A payment gateway is a technology that transmits payment information securely from a website to a payment processor. It authenticates payment data, encrypts the information before sending to the payment processor, and ensures that payments are completed safely.

Daily Debrief Newsletter

But first, let’s get a better understanding of what Friend.tech is all about. Friend.Tech operates as a decentralized social network where individuals can tokenize their social credibility. At its peak, it became one of the most discussed crypto protocols online, with speculation around a potential token launch. Few foresaw that this would later contribute to Friend.tech’s decline later on.

Two weeks after its launch, Friend.tech earned a reported $1 million in fees, equivalent to 5% of the value of each transaction, in a single 24-hour period. That translates to more than $700,000 in ether revenue after accounting for gas fees and other costs in just a day. Each user on the app has a chat group akin to ones found on platforms like Telegram.

The growing interest in DSM represents a significant shift towards a more open web. This shift challenges the «walled gardens» mainstream social media platforms have erected over the years. Friend.tech faced several security challenges, including multiple SIM-swap attacks that allowed unauthorized access to user accounts, resulting in substantial financial losses. The platform acknowledged the attacks and introduced two-factor authentication (2FA) as a preventive measure but did not deny the initial exploit. Launched in August 2023, Friend.tech had a stellar rise, generating over $18 million in revenue within two months. With its unique social trading model, the platform drew widespread interest, attracting 1,043,701 users by the end of October 2023.

Key prices increase as demand grows, thanks to a unique bonding curve mechanism. The project charges 5% fees on transactions plus 5% that goes to the key issuer. However, some within the crypto community have already looked into the how to buy and sell cryptocurrency history of the known online pseudonyms behind Friend.tech and there are already red flags. Members of the team behind Friend.tech were allegedly also behind a project called Kosetto, which sold wearable NFT stickers. Then, suddenly, in early 2023, the project was abandoned, without notice to users who had invested.

The final blow came in September, when the Friend.tech team transferred control of their smart contracts to Ethereum’s null address, effectively renouncing control. This “burning” of the contract meant that no further modifications could be made, marking the end of Friend.tech’s active development and leaving the platform stagnant. In a final attempt to revive interest, Friend.tech announced «Friendchain» in June 2024, intending to improve scalability and reduce transaction costs. However, the migration from Base faced immediate criticism, and abandoning the plan failed to improve the situation. In terms of market capitalization, that translates to $274 million at its peak to $8.01 million currently, ranking it below the top 1600 cryptocurrencies.

Here is a thread that captures how the number of active buyers and sellers spiked after the Paradigm funding news. These are some of the reasons for the surge in revenue generated by Friend.tech. There are a few more reasons, including Paradigm’s latest round of funding. As there is a quadratic equation involved, the floor price of sell bitcoin in the united kingdom 2020 the share might increase or decrease steeply, qualifying the entire gig as SocialFi one. The fact it has been tried on other platforms and DIDN’T work just adds to it.