Friend.tech Has Generated Over $1 Million Fees In 24 Hours

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Friend.tech, a Decentralized social network that was recently released, went on to generate over $1 million in fees in about 24 hours on the 19th of August, where it outperformed established players in the ecosystem of crypto, which included Uniswap and the network of Bitcoin.

The platform was launched in beta version on the 11th of August, which would allow the users to tokenize their social network by purchasing and selling their shares of their connections, which further enables a person who would be purchasing another’s share to send private chat messages to each other. The protocol also ends up charging a 5% fee on the crypto transactions, with the spread from trades that would be representing the profit of the owner. 

Friend.tech’s Revenue Model A Basis For Analysis

The platform of Friend.tech was built on the layer-2 base of Coinbase, and the platform has been able to see some considerable activity. According to data that was retrieved from DeFiLlama, the platform managed to generate close to $1.12 million in fees in just about 24 hours, and $2.8 million since it was launched.

The total project revenue stands at a whopping $818,620 with over 650,000 transactions on the social platform, and more than 60,000 unique traders. Behind this project, one can find the hand of Racer, a pseudonymous developer. According to a senior software engineer working at Coinbase, Racer had previously created TweetDAO and Stealcam, social media networks, which were both based on nonfungible tokens. 

The hype around Friend.tech has also brought forth an analysis of the revenue model of the social platform, along with the risks and the future. Ignas, a pseudonymous decentralized finance researcher, went on to note that under the current business model, revenue could come only from trading fees but not from having more shareholders.