The Web3 social network Friend.Tech continues its growth – users and influencers have collectively earned more than $12 million in commissions. This is evidenced by the Dune dashboard from TK Research.
In total, Friend.Tech has 220,000 unique traders registered with a total trading volume of $240 million.
Any user in the application has his own channel, access to which is granted after purchasing “keys” (previously called “shares”). When buying or selling them, a 5% commission is charged to the platform and another 5% to the channel owner.
Pricing for “keys” occurs along the yield curve – that is, the more assets are purchased and in circulation, the higher their value becomes, and vice versa.
According to on-chain data, some influencers on Friend.Tech earn more than $50,000. The most active member of the community received more than $341,000 in commissions.
Since its launch on August 10, the social graph has been experiencing its third surge in activity. However, the app has still not surpassed the peak of 85,700 transactions per day seen during the second wave of the rush.
At the end of August, some users stated the “death” of the project, when activity in the protocol dropped by almost 90%.
A few weeks later, the total value of funds locked in the protocol jumped several times – to $13 million. At the time of writing, the figure is at $35.8 million, according to DeFi Llama.
It would seem that the project is gaining momentum and demonstrating powerful results even at the beta stage with an invite system. But some market participants are still unsure about its long-term prospects.
“The yield curve is definitely a bit rough and it would be better if developers could choose a specific formula for their audience. The commissions are actually crazy too. I don’t think the platform immediately expected such large volumes,” said influencer and NFT collector under the nickname Dingaling, whose channel ranks 13th in the Friend.Tech top.
He added that the further success of the social network depends on the structuring of the future tokenomics and the likely airdrop. The coin distribution has not yet been officially confirmed. Some speculate that bonus points awarded for trading are eventually converted into tokens.
“[Friend.Tech] must remain successful until the first airdrop and coin launch. I’m not sure what happens next because I don’t really see the point in paying $10,000 as an entry fee into someone’s secret chat,” Dingaling added.
The founder of DeFiance Capital, Arthur Cheong, who ranks 18th in the top social network, spoke about the concept of the platform’s social tokens. In his opinion, developers use already established mechanisms and improve them, and the yield curve provides natural liquidity for all “keys”.
However, he emphasized that the Friend.Tech team needs to maintain the app’s momentum and maintain user retention rates. In addition, the platform needs to eliminate some shortcomings – for example, farming its own “keys”.
A Web3 developer under the nickname 0xngmi criticized the application’s security system. First, he highlighted the risks of front-end hacking and data leakage.
brief review of friendtech’s security model:
— if friendtech frontend is hacked they can steal funds (just direct iframe to send the ETH)
— if privy iframe is hacked they can steal funds (it holds key)
— if privy dies/loses data, you lose your money, since they keep 2/3 shards pic.twitter.com/h0VLbaYihZ
— 0xngmi (@0xngmi) September 20, 2023
Secondly, the programmer noticed that the protocol stores private keys in a privacy frame. If it is compromised, the loss of user funds is inevitable.
“This means that a hack like the Balancer attack will be devastating, simply opening the app will drain your wallet without you having to do anything,” warned 0xngmi.
Let us remember that at the end of August the project team warned about possible blocking for using copies or copycats of the application. The publication caused a strong reaction from the community, so a few hours later the post was deleted, and the co-founder of the project under the nickname Racer published an apology for the “stupid statement.”
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