Personal stockization, friend tech opened the curtain of the Web3 social era?

The Base mentioned in the previous veDAO Research Institute article has recently produced a new hot spot: a SocialFi DApp called Friend.Tech has sparked a new upsurge. A total of $175 million in cryptocurrency has been transferred to the platform since Base’s inception, with nearly 580,000 transactions recorded on Aug. 10. On the same day, the number of daily active users of Base reached a record high of 136,000. And all this is mainly due to Friend.Tech, an invitation-only Base native Web3 social DApp.

Friend.Tech, which has earned more than US$500,000 in two days after its launch, has become the hottest Socialfi project in the Base ecosystem through the same "one-for-three" invitation code mechanism as Zeng Clubhouse, and it is also a Web3 project that has received a lot of attention recently. According to the CryptoKoryo data panel, as of 20:30 on August 19th, in about 10 days since its birth, the transaction volume of friend tech has exceeded 11,000 ETH, the number of independent users has exceeded 39,000, and more than 518,000 transactions have been completed. The Paradigm effect is also strong enough. After the financing news was announced, the number of active users of friend tech increased rapidly, and the number of buyers per hour exceeded 1.7k, setting a record high. In this article, let’s learn about Friend.Tech together.

What is Friend.Tech?

Friend.Tech, which is hard to find, is a DApp based on the Base ecology. Through strong binding with Twitter, users can buy and sell any user's "shares (Share)" on Friend.tech through the Ethereum of the Base chain. Investors of KOL shares will have the right to have a direct dialogue with KOL. It allows users to buy and sell shares in related Twitter accounts, and owning a stake in a KOL grants users access to that KOL's private chat room.

The essence of Friend.Tech is to bet on the influence of KOLs, and it is a KOL tokenization project. It is equivalent to Friend.tech issuing tokens for KOLs, that is, tokens of personal IP; in this way, monetizing the value of KOLs can also be regarded as an attempt to quantify social value.

According to data from Dune Analytics, Friend.Tech has brought 7,860 users, 4,400 Ethereum ($8.1 million), and more than 126,000 transactions in less than 24 hours since the launch of the beta version, far exceeding OpenSea at the same time The transaction volume within the period; on August 10, the number of daily active users of Base reached a new high. Friend.Tech broke through 1.8 accounts within 4 days of its launch, with a weekly trading volume of 6,900 ETH, and Share’s royalty income exceeded 300 ETH.

Background of Friend.Tech

Racer is one of the creators of Friend.tech. He previously created TweetDAO, a DAO organization that grants access to its Twitter account by holding its NFT called "TweetDAO Egg."

Later, Racer and Shrimp, another co-founder of Friend.tech, created Stealcam, a photo-sharing application based on the Arbitrum ecosystem. In Stealcam, users can upload pictures, and the pictures will be mosaiced, and other users need to steal (open pictures) to view the original pictures, and each time the steal will increase the price according to the rules. This design combines curiosity, celebrity effect, Twitter communication and owner economic model, so that the project itself has high-strength self-communication attributes.

In the end, the developers decided to reshape the Stealcam's positioning and created a project called Friend.tech. Shrimp and Racer originally planned to deploy the project on Arbitrum. Perhaps based on the market popularity, they finally chose Base; so there is Friend.tech is on fire today. Friend.tech goes a step further than previous products, bringing social attributes and cryptocurrencies together. In this way, KOLs and ordinary users on Twitter can build social tokens for cash.

How does Friend.tech work?

Every user who registers on Friend.tech needs to link their account with Twitter. In this way, a user's Twitter account is quantified as a social token on Friend.tech, and other users can purchase shares of these tokens with ETH, which represent the user's popularity and interaction on Twitter equity.

Similar to other digital assets, the value of these shares fluctuates. Let's say you buy a certain user's stake at a certain price, and then their share floor price (lowest price) goes up shortly thereafter. You can choose to sell your stake at a higher reserve price, potentially making a profit. Conversely, if the reserve price is lower than your purchase price, you can choose to hold or sell at a loss. All transactions are recorded and viewable on-chain. Each transaction, whether buying or selling, carries an additional 10% fee: 5% goes to the protocol and 5% goes to the holder of the stake being traded.

@functi0nZer0 tweeted about Friend.tech's stock price pricing model (which has not been officially confirmed), which reveals a simple supply and demand structure. A quadratic relationship is used between the number of shares held by an individual and the price of the next share, and the price of each share "exponentially changes" as the number of purchasers increases. Its formula is: Price in ETH = Supply ^ 2 / 16000. * Where Supply represents the current number of shares owned by an individual. Incentive incentives are an important means for friend tech to transform Twitter users into core users of the application, using potential Token airdrop expectations and equipped with tangible points to motivate users. friend tech will distribute a total of 100 million points during the test period in the next 6 months, distributed once every Friday, and the point records will not be recorded on the chain. On August 19, friedn tech completed its first point airdrop.

How to use Friend.Tech

1. Access the platform

Start by opening the friend.tech website in your mobile browser. Once on the site, click the "Share" button on your browser menu; then select the "Add to Home Screen" option. Then open the friend.tech app on your phone's home screen.

2. Register and fill in the invitation code

• After opening friend.tech, register (you can log in through Google or App Store). After the registration is completed, the user needs to fill in the invitation code to obtain the full right to use. Users typically receive three invite codes, which they can share with others.
• set up account

After filling in the invitation code, the user needs to bind his Twitter account and enter 0.01 ETH based on Coinbase's Base chain into the address to activate the account. You can go to the official Base cross-chain bridge, connect your wallet and transfer your mainnet ETH to the Base chain. Once you have the ETH of the Base chain in your account, you can claim your 3 invitation codes.

3. Buy shares and chat

• After entering the App, you can see the current hottest users on the homepage and buy their shares. At the same time, you can also search for users you are interested in and buy their shares. Before purchasing, a lock icon will appear on the chat interface after clicking on the user, prompting the user to purchase shares. And when the purchase is complete, you can chat one-on-one. Friend.tech In order to prevent spam, each holder can send three messages, and then wait for the other party to reply and reset the upper limit.
• withdraw

If you have successfully earned money and wish to withdraw your funds, tap your profile within the app to withdraw your ETH to your own address. Use the Base cross-chain bridge to transfer your funds back to the mainnet for further use or transactions.

Issues to be aware of

Although Friend.tech has experienced exponential growth in the 24 hours since its launch, many crypto KOLs have also begun to profit, and its popularity and discussions remain high, but some people have expressed concerns about the platform's pricing model and data privacy.

Friend.tech's PC-side website currently guides users to download the App using mobile devices. On this website with only one webpage, there is very little information about the project. There is no common information about Web3 projects such as the project’s roadmap, founder or white paper. At the same time, the privacy policy link displayed on the page only displays " Coming soon!".

At the same time, the user experience of Friend.tech is not friendly. On the first day, the app experienced network glitches due to the influx of users, more and more KOLs signed up to the platform, and many users complained of delays and app crashes. In fact, rather than a new social product, Friend.tech is more like a variant of NFT gameplay, and the logic behind it is actually the logic of NFT holding: users are optimistic about a certain KOL, and think that the KOL’s views are helpful to them. Or the KOL community is active, and its share will increase in the future before choosing to hold it. But this means that how to select high-quality KOLs has become the most critical decision-making consideration for users. Just like selecting a suitable target from the countless NFT products on Ordinals, users in Friend.tech must first know which accounts on Twitter are active and which accounts can easily create a community. Users are required to observe the reading volume of Twitter KOL tweets in advance for analysis. It is worth noting that at present, most of Friend.tech is still dominated by European and American KOLs, and Chinese KOLs are relatively weak. After completing the simple screening and selecting high-quality KOL targets, users have to identify which KOLs are willing to operate Friend.tech for a long time, and which KOLs are just here to join in the fun and leave. Generally speaking, Friend.tech has given users' attention to cost in a disguised form. If you want to get more high-quality information, you need to invest in equivalent assets. But each user's attention is very limited, if too much attention, it will bias the industry judgment. Therefore, Friend.tech itself has an upper limit of user attention, and this has also become the development line of Friend.tech product itself to some extent.

Conclusion

The SocialFi track has been continuously concerned by the encryption world, but so far there has not been a leading project. The popularity of Friend.tech this time will make the concept of "Web3 social" and related projects popular again. Friend.tech will be A short-lived hot spot, or will it achieve long-term success? This issue will take time. As with any Web3 innovation, Friend.tech's future will depend on its ability to adapt, evolve and continue to deliver value to users. And the delicate balance between social interaction and investment potential may play a big role in determining their longevity.

Reference: Price function speculated by @functi0nZer0 Source: