Friend.tech’s Surging Success and Name Change
Friend.tech, a decentralized social media platform, has experienced an unprecedented surge, generating over $1 million in fees within a 24-hour period. The platform has also made a significant change to its core asset’s name, switching from “Shares” to “Keys.”
Key Points:
- Friend.tech operates like a stock market, allowing users to buy and sell “shares” of personal accounts.
- These shares can provide dividends and capital appreciation, similar to traditional stocks.
- However, the focus on profit expectations raises concerns about potential confusion with traditional securities.
- Influencers who allow others to purchase shares may face liability for share price fluctuations.
- Friend.tech’s privacy policy is not yet available, and extensive permissions are granted to the platform at sign-up.
Influencers at Risk?
There is a possibility that influencers could face legal trouble if the shares are considered unregistered security offerings. Similar to the high-profile case against Ripple, the SEC may intervene due to concerns about the platform’s privacy policy and permissions.
A Strategic Name Change
In response to SEC concerns, Friend.tech has rebranded its core asset from “Shares” to “Keys.” This change aims to symbolize the unlocking of friends’ chatrooms. While the tokens on Friend.tech may not be classified as securities, how users present them could impact their classification.
Hot Take
Friend.tech’s success and unique offering are challenging the boundaries of digital assets. Legal experts and regulators are closely monitoring the platform, and the community is engaged in a lively discussion about its future. The next few weeks will reveal whether Friend.tech is a groundbreaking social innovation or a risky endeavor with securities laws.
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