Friend.tech Proposes New Ownership Model for Users
A social platform called Friend.tech is introducing a new ownership model that allows its users to become investors in the company. This shift aims to empower platform users and create a stronger sense of community. Friend.tech users will no longer be just content creators or consumers but actual investors in the platform. The company has reached an agreement with previous shareholders, including Paradigm, to transfer the rights of selling tokens directly to the users. By enabling this transfer, Friend.tech is embracing a user-centric model where users have a say in the platform’s future and share in its success.
Friend.tech’s Popularity Declines After Initial Success
Friend.tech, launched on August 10, 2023, quickly gained popularity as one of the top decentralized applications (dApps) on the Base layer. It attracted over 200,000 users and facilitated a trading volume exceeding $230 million. The platform’s unique feature is converting user influence into tradable tokens known as “keys,” which grants access to a creator’s attention or influence. Its appeal expanded beyond the crypto space and attracted cryptocurrency influencers, NBA players, and esports personalities.
The involvement of Paradigm, an investment firm connected to Coinbase, further boosted confidence in Friend.tech’s potential. However, the platform has faced privacy concerns related to user doxxing due to the link between Twitter profiles and Ethereum addresses. Friend.tech addressed these concerns by clarifying that leaked information was from their public API and highlighting the importance of user caution in protecting personal information.
Despite its initial success, Friend.tech has experienced a decline in popularity recently. According to a Dune analytics dashboard, the project generated over $1 million in revenue at its peak last year but has fallen to under $15,000 over the past couple of months.
The Benefits of User Ownership and Participation
The shift towards user ownership and participation in platforms like Friend.tech brings several benefits:
- Empowerment: Users have a direct impact on the platform’s trajectory and can shape its future.
- Community Building: The bond between users and the company strengthens, fostering a cooperative culture.
- Inclusivity: The user-centric model promotes inclusivity and equity in technology entrepreneurship and governance.
- Democratization: The move challenges traditional venture capital financing and encourages broader user participation and investment.
Paradigm’s Role in the User Ownership Model
Paradigm, known for investing in innovative technology ventures, played a significant role in Friend.tech’s user ownership model. As one of the previous shareholders, Paradigm agreed to distribute shares among users, signaling a rise in decentralized and user-focused business models. This partnership demonstrates the growing trend of involving users in the success of platforms and aligning interests between investors and users.
User Engagement and Investment Opportunities
The transition to user ownership opens up new avenues for user engagement and investment within the crypto industry. Friend.tech’s decision to provide users with ownership stakes and control over tokens allows for a more inclusive approach to technology entrepreneurship. It empowers users to become active participants in shaping the platform’s development and success.
Hot Take: Friend.tech Empowers Users Through Ownership
Friend.tech’s new ownership model marks a significant step towards democratizing investment dynamics within the digital realm. By allowing users to become investors in the platform, Friend.tech fosters a stronger sense of community and empowers users to shape its future. This user-centric approach challenges traditional venture capital financing models and promotes inclusivity, equity, and cooperation. As platforms like Friend.tech continue to embrace user ownership and participation, we can expect a shift towards more decentralized and user-focused business models in the crypto industry.
Sources: CoinMarketCap, CryptoNews, Dune Analytics
By
By
By