Crypto News – With an emphasis on becoming the next iteration of SocialFi on Coinbase‘s new layer 2 platform, Base, Friend.tech is a popular name these days.
Can the Social Media Platform FriendTech, Build on the Base Crypto, Harm The Base Network in the Long Term? – 2023
On August 11, the day after Base’s mainnet launch, Friend.tech, likely created by the pseudonymous creator Racer, went live with an invite-only beta. On launch day, the application exceeded server capacity.
The amazing boom experienced at the time of Friend.tech’s introduction, however, only lasted a short while, as its daily trade volume began to decline in the days that followed, especially as its root platform continued to encounter unfavorable information that dismayed the community.
Friend.tech also Increased Base Activity
On the recently created Base blockchain, the application has also greatly increased activity. On August 20, Base’s daily transactions doubled the amount of the two top L2 networks, Arbitrum and Optimism, to reach a new high of over 900,000.
Highlights of Friend.tech
The ability for users to own shares is one of Friend.tech’s standout features. On the application platform, users of this social network can buy and sell shares of other people. These shares operate like other digital assets and may change in value over time. Friend.tech ranks these shares based on price floors and the number of purchasers.
Its adoption of a bonding curve, similar to Uniswap’s automated market-making (AMM) architecture, which automatically determines the buying and selling price, is another intriguing aspect that contributes to its appeal. On Friend.tech, traders don’t need to find a counterparty to buy or sell shares. Instead, a price is calculated automatically based on how many people own shares in a certain account.
There is a Correlation Between the Number of Shareholders and the Share Price
The number of shareholders affects the share price. For instance, Cobie, a well-known influencer and trader of cryptocurrencies, has about 145 holdings and 2.04 Ethereum (valued at $3,400) on his Friend.tech account. The amount of 0.576 ETH is the worth of crypto analyst Adam Cochran’s 57-holder account.
Analysts Expect Hype in Friend.tech to Be Short-lived, Impacting Base
Although it has gained popularity, several observers have noted that the euphoria may not last long. The app is presently nothing more than a method to speculate on shitcoins, also known as influencers’ shares, and farm a prospective airdrop, according to a tweet from pseudonymous crypto analyst DeFi Made Here.
Additionally, they argued that it was challenging to lure other investors to a user’s shares due to the bonding curve. But as well-known individuals from outside the crypto community—such as Y Combinator founder Garry Tan, NBA player Grayson Allen, and professional gamer Faze Banks—join the social media network, it is quickly gaining popularity.
When is the Friend.tech Airdrop?
The community is anticipating an airdrop for individuals who utilize the application after this social network revealed that it intends to release tokens in the future. The first airdrop will take place on August 18, according to preliminary information.
Impressive results have been obtained as a result of the buzz for both the project and the foundation upon which it is based. The data emphasizes a critical accomplishment for the Coinbase-initiated L2 Network Facility. The number of users who are active on a daily basis has surpassed 100,000 for the first time, reaching 136,000.
A limited beta version of Friend.tech, a web3 social networking project built on Base, has just been made available to users. In this direction, to view and register for an account, users must obtain an invitation code from other users. In addition, the social network Friend.tech only supports mobile apps—not desktop versions.