Social Networking App Friend.Tech Generates $12 Million in Fees for Users
Friend.Tech, a social networking app, has generated $12 million in fees for its user base of over 160,000 since its inception. When users join the app, they are given their own channel that can be accessed by owning at least one key. Whenever a key is bought or sold, the app receives a 5% fee, while the channel owner receives a 5% fee. The cost of buying a key fluctuates on a bonding curve, making it more expensive to access popular channels.
According to TK Research’s Dune dashboard, popular crypto influencers have earned over $50,000 in fees. However, users who buy keys face a 10% loss when joining or leaving a channel and also bear the volatility of key values. The sustainability of the system remains uncertain.
Challenges and Sustainability Concerns
Dingaling, a pseudonymous crypto influencer and NFT collector with one of the most expensive channels on Friend.Tech, expressed dissatisfaction with the bonding curve and high fees. Dingaling believes that paying a $10,000 entry fee for a secret chat room may not make sense in the long run. The potential for an airdrop has incentivized users to trade keys and participate in fee transactions.
The success of Friend.Tech depends on how it structures its tokenomics and potential airdrop. By incentivizing activity or introducing revenue sharing features, the app could maintain user engagement. Without these enhancements, its future may be challenging.
Hype Cycles of Friend.Tech
Friend.Tech has experienced three waves of activity since its launch. Although daily fees reached as high as $2 million during the latest surge, the app has not surpassed its peak of 85,700 transactions per day from the second wave. Activity and fees have significantly dropped between waves, indicating that user motivation can decline rapidly.
Hot Take: The Uncertain Future of Friend.Tech
While Friend.Tech has generated substantial fees for users and attracted popular influencers, its long-term sustainability remains questionable. The bonding curve and high fees have raised concerns among users, especially as entry costs increase. The potential airdrop offers some incentive for continued engagement, but the success of the app hinges on effective tokenomics and additional features to drive user activity. Without these improvements, Friend.Tech may struggle to maintain its current level of success in the highly competitive social networking space.
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