The SocialFi platform, friend.tech, has set a significant record on Base, leading this Layer 2 to achieve remarkable numbers of users and transactions. So, what exactly is friend.tech? Explore more with Base Ecosystem in the article below.

What is friend.tech?

Friend.tech is a web3 social media project built on Base. Currently, it is in a limited beta phase, and users require an invitation code from an existing user to sign up. It's worth noting that friend.tech is available only as a mobile application, with no desktop version offered.

The platform has also announced plans to issue tokens in the future, leading the community to anticipate an airdrop for app users.

One of the standout features of friend.tech is that users can own "keys” of other users , influencers, or celebrities. This platform enables users to buy and hold keys of other individuals. These keys function like other digital assets, fluctuating in value over time.

The price will be determined based on price floor and number of buyers.

Friend.tech features

At Friend.tech, everyone's categorized as either a creator or a follower. Here is what that means:

For example, you've got a friend who is a creator and new to Friend.tech. You can purchase keys of their account at the base price. As your friend's network grows, the value of those keys go up. So, it's a win-win for both the creator and you as a key holder.

Someone can even buy shares of your account, depending on what value your network offers. At Friend.tech, the quality of the network is the net worth of the individual.

Friend.tech recently transitioned from calling them 'Shares' to 'Keys'. The name change captures their true function: Keys act like VIP passes, granting followers access to exclusive chatrooms.

Advantages and Disadvantages of Friend.tech

From the preliminary information about friend.tech, this Web3 social network exhibits both strengths and weaknesses:

Advantages:

• As a social media built on Layer 2 Base, the platform has garnered significant attention especially after its mainnet

• Launched in early August 2023, it still holds vast potential for further development, enhancements, and partnerships.

• The anticipated token airdrop for users is a particular highlight.

Disadvantages:

• No token issuance or minimal airdrop.

• Potential failure to break into mainstream, risking devaluation of assets.

• High transaction fees.

• Regulatory risks, especially being seen as a security.

• Execution risks due to financial ties and the need for rapid iteration.

• User retention issues, especially if the platform doesn't improve its current user experience.

• Financial volatilities due to fluctuations in DAU and price.

• Security risks linked to private keys and Web3 assets.

• Anonymity of the team.

• Potential content violations that could lead to regulatory challenges.

Onchain data

After launching for a month, Friend.tech has achieved many impressive results.

• 161K users

• Over 5M total transactions

• 122K ETH volume

Furthermore, the key's price increases over time, reaching its peak at 8.8 ETH.

As of September 13, friend.tech's TVL has reached over 28 million USD, with a revenue of 146.36 million USD. Additionally, the accumulated fees surpassed 70 million USD, averaging more than 2M USD daily.

Investors

In May 2023, friend.tech revealed they had secured seed funding round with the Paradigm's involvement, though the exact investment amount was not revealed.

Summary

There is all basic information about friend.tech, a social network on Layer 2 Base. Friend.tech has the potential to lead in SocialFi, but they need to address their weaknesses. Will this shape the future of social media? Only time will reveal.