Friend.tech Generates Nearly $20 Million in Revenue Since Launch
The team behind friend.tech has achieved a revenue of almost $20 million since its launch in August. According to data from DeFiLlama, friend.tech is currently the top revenue-generating application on Base and the second-largest across the entire crypto space. It is projected to generate an annualized revenue of $180 million.
The platform has generated around $40 million in user fees so far, derived from taxing 10% of the trading volume of social tokens. Half of the fees go to the project’s team as revenue, while the other half is distributed among users whose keys are traded.
Friend.tech is a platform that allows users to link their Twitter accounts and facilitates the buying and selling of influencer profile tokens called “keys” using ETH on Base. These keys provide privileged communication access to influencers, creating a unique social interaction experience.
Despite the emergence of similar clone apps, friend.tech continues to dominate the SocialFi niche in terms of daily volume. However, there has been a decline in the number of unique users since late September. The founder of friend.tech, known as ‘0xRacer,’ has individually earned over $440,000 from the platform.
Hackers Target Friend.tech Users
A hacker recently stole approximately $385,000 worth of digital assets from friend.tech users within 24 hours through SIM-swapping attacks. The scammer targeted four different users and pilfered 234 ETH. Manifold Trading warns that $20 million out of friend.tech’s total locked value of $50 million is at risk due to sim-swaps.
Manifold Trading suggests that friend.tech enhances its account security protocols by implementing two-factor authentication (2FA) to mitigate the risk. The company also points out that friend.tech’s current setup allows a rogue developer to reconstruct private keys from user data in their database, putting the entire total locked value at risk.
Hot Take: Friend.tech Dominates SocialFi Despite Security Risks
Friend.tech has emerged as a dominant player in the SocialFi space, generating significant revenue and attracting users despite security vulnerabilities. With nearly $20 million in revenue since its launch, friend.tech holds the position of the largest revenue-generating application on Base and ranks second across the crypto industry. However, recent SIM-swapping attacks targeting friend.tech users have exposed vulnerabilities in the platform’s security measures. To safeguard user funds, it is crucial for friend.tech to prioritize account security by implementing two-factor authentication (2FA) and addressing potential risks associated with private key reconstruction. By strengthening its security protocols, friend.tech can continue to thrive as a leading platform in the SocialFi niche.
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