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Friend.tech Achieves $50 Million Total Value Locked (TVL)
Friend.tech, a social tokenization platform built on Base, has reached a significant milestone with a Total Value Locked (TVL) of $50 million as of September 3, 2023. This innovative project allows users to create and trade their own tokens based on their social influence. According to data from Dune Analytics, Friend.tech has consistently generated around $1.1 million in fees daily since September 8, 2023. This surpasses the fees generated by other prominent crypto platforms such as Bitcoin, Opensea, and MakerDAO.
Friend.tech’s Growth and Revenue
Launched on August 10, 2023, Friend.tech quickly gained popularity among crypto enthusiasts and influencers. The project has seen remarkable growth in TVL, establishing itself as one of the largest projects on Base. The platform’s high demand for keys has resulted in significant trading volume and fees. As of September 3, 2023, the protocol has accumulated over 11,000 ETH ($18 million) in an externally owned account (EOA). However, there have been no expenditures from this address yet, leading to questions about treasury usage and governance.
Key Fees and User Challenges
While Friend.tech offers an exciting opportunity to monetize social media interactions, it also presents challenges and risks for its users. One challenge is the minimum deposit requirement of 0.01 ETH (~$20) to create a key, which may discourage potential users from joining the platform. Additionally, users would need at least eight traders purchasing their key to break even, which can be difficult for less popular or new creators. Another hurdle is the uneven distribution of earnings among key creators.
Data shows that the top 30 creators have claimed 15% of all royalties distributed, while around 183,657 users possess fewer than two circulating keys, earning an average income below $1. However, there are opportunities for Friend.tech users to expand their audience and income on the platform. For example, they can participate in the referral program to earn rewards by inviting new users.
Hot Take: Opportunities and Challenges for Friend.tech Users
Friend.tech’s achievement of a $50 million TVL demonstrates its growing popularity and success as a social tokenization platform. While the project generates substantial fees and revenue, there are challenges for users, such as the minimum deposit requirement and uneven earnings distribution. However, with opportunities to expand their audience and participate in the referral program, Friend.tech users have avenues to increase their income on the platform. It will be interesting to see how Friend.tech addresses user concerns and continues to evolve in the crypto space.
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**Hot Take: Opportunities and Challenges for Friend.tech Users**
Friend.tech’s achievement of a $50 million Total Value Locked (TVL) demonstrates its growing popularity and success as a social tokenization platform. The project allows users to create and trade their own tokens based on their social influence. Since its launch in August 2023, Friend.tech has consistently generated around $1.1 million in fees daily, surpassing other prominent crypto platforms.
However, there are challenges for users of Friend.tech. The minimum deposit requirement of 0.01 ETH may discourage potential users from joining the platform. Additionally, users need at least eight traders purchasing their key to break even, which can be difficult for less popular or new creators. The uneven distribution of earnings among key creators is another hurdle.
Despite these challenges, Friend.tech offers opportunities for users to expand their audience and income on the platform. They can participate in the referral program to earn rewards by inviting new users. Friend.tech’s success and growth in the crypto space show its potential, and it will be interesting to see how the platform addresses user concerns and continues to evolve.
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