- 64,000 new users, trading volume has exceeded 24,000 ether since launch
- The app enables automatic fund transfers, limiting complex transactions
- Its share price increases in parallel to supply, which is logically problematic
Friendtech, a decentralized social (DeSo) network released on August 11,has generated $1.42 million in fees in the last 24 hours and $4.2 million since the launch. It has more than 64,000 new users and its trading volume has exceeded 24,000 ether since August 11, Cointelegraph reported, citing DefiLlama data.
The network has outperformed Bitcoin, Uniswap, and other established players in the crypto market.
Praise and criticism
Some praise the app for how many new blockchain users it has brought, including non-crypto public figures like YouTuber Faze Banks. Others warn that the app will burn out soon.
The app, which runs on Coinbase’s newly launched Base, lets users buy shares of influencers or celebs. These shares give them access to a private chat with the person.
Novel UX developments
The app has been praised for its novel developments in user experience. It does not have to be downloaded from an app store, giving the idea of decentralization strong support. It also enables automatic fund transfers, limiting the need for complex transactions.
Last but not least, the app lets users make a one-time deposit of ether and then transact shares without having to sign off on another transfer. Many dApps have been criticized over the requirement to continuously verify transactions via MetaMask signatures.
Troubling factors
In an interview with Cointelegraph, a pseudonymous crypto commentator raised several red flags, which have led him to believe that the app’s share price and user activity will plummet in less than two months. In his opinion, its share prices are increasing at an unsustainable rate.
Another pseudonymous entity, a software engineer, commented that the share price on the app stands in direct proportion to the outstanding supply. In other words, the price increases as the supply increases, which is logically problematic.
Friendtech has been compared to 2021’s BitClout, a predecessor DeSo app, which was quite short-lived.
Future airdrop and token?
Recently, it emerged that crypto VC firm Paradigm had invested seed round funding in Friendtech, leading insiders to speculate that an airdrop and a token launch are in the works.
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