Tokenization Social Web: The Rise and Challenges of Friend.Tech

Friend.Tech is a decentralized social web (DeSo) based on the Base ecosystem, allowing users to tokenize their social networks by buying and selling "shares" of users on the platform. The project was launched on August 11, 2023, with a beta version using an invitation code mechanism, generating over $500,000 in revenue within two days, and is currently the hottest SocialFi project in the Base ecosystem.

According to data platforms, as of August 19 at 20:30, the trading volume of Friend.Tech has exceeded 11,000 ETH in about 10 days, with more than 39,000 unique users and a total of over 518,000 transactions completed.

Core Concept of Friend.Tech

Friend.Tech is an innovative platform that combines social web with token economy. Users can buy and sell "shares" of any user through Ethereum on the Base chain. Owning a share of a certain user will grant access to that user's private chat room.

This model allows users to earn income through social influence while participating in the social value of other users. Essentially, this is an investment and monetization of user influence.

Operating Mechanism

Users can freely choose to join a certain group by paying the corresponding base price to acquire shares in the group. Joining a group represents an investment in that group and its owner, so users often choose to buy shares in groups they believe have potential in the early stages.

As the number of group members increases, the total amount of shares and the base price also rise. However, the value of these "shares" will fluctuate. The group founders increase the base price of shares by attracting more users to join, and conversely, it will decrease.

Business Model

Friend.Tech charges a 10% fee on each transaction of group shares, of which 5% is allocated to share holders and 5% goes to platform revenue.

The economic model of the platform mainly includes the group share growth model and point incentives:

1. Share Growth Model: The price per share exhibits "exponential changes" as the number of purchasers increases.
2. Incentive Points: Attract users through expected potential Token airdrops and practical points.

Future Outlook and Challenges

Despite the rapid development of Friend.Tech, it still faces numerous challenges:

1. Potential legal risks: Founders of groups issuing tokens through fans may face legal issues in certain regions.
2. High entry barrier: The base price of shares in popular groups has reached a high level, which may discourage new users.
3. Liquidity issues: The high cost of user onboarding in the later stages may affect the platform's liquidity.
4. Information Transparency: There is little core information about the project, lacking a roadmap and white paper.

Conclusion

The SocialFi sector has always attracted attention, but there has yet to be a clear leading project. Whether the popularity of Friend.Tech can reignite the "Web3 social" concept and whether it can become the industry leader still requires time to verify. Regardless, this innovative model provides new ideas and possibilities for the future development of the Social Web.