The Rise of Social Finance Platforms in Crypto
Social finance platforms in the crypto space are expanding their features to find a successful product-market fit. However, these platforms may struggle to distance themselves from their origins in financial speculation.
FriendTech: The First Mover
FriendTech, based on Coinbase’s Base platform, was the first social finance platform to gain traction. It allows users to buy keys for access to influencers’ closed group chats. The price of these keys increases as more are purchased, and there is a 10% fee on each transaction split between the creator and the influencer. This led to a wave of financial speculation, with top crypto influencers earning significant fees on the platform.
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The Underdeveloped Nature of FriendTech
Despite its success, FriendTech remains relatively underdeveloped. The platform only allows users to post in group chats and trade keys, lacking additional features found in newer applications.
Doubling Down on Social and Finance
Other social finance platforms have emerged with expanded functionality. PostTech introduced posting to a general feed similar to Twitter. StarsArena offers a tipping feature that allows users to get paid for their public messages. CipherRIP requires new users to buy multiple cores (keys) in order to send a message on its public feed.
Experimenting with the Financial Aspect
New Bitcoin City is not a FriendTech clone but offers similar functionalities. It allows DMs between influencers and keyholders, lets influencers play games with keyholders, and enables influencers to set fees and access requirements for their group chats. The app also incorporates a tactic called (3,3), where users can make requests that lock in each other’s keys for 30 days.
Looking Beyond FriendTech
While these new social finance platforms offer improved features, they may still struggle to compete with FriendTech’s social gambling element. Some platforms, like New Bitcoin City, aim to take on mainstream apps like X, Meta, and TikTok while providing a user-friendly crypto experience.
Hot Take: Crypto Ready for Mass Adoption
With the rise of social finance platforms and their increasing functionality, crypto may finally be ready for mass adoption. These platforms offer a familiar consumer app experience while incorporating the benefits of decentralized technology.
