Friend.tech is one of the subjects discussed the most in the crypto world. Many crypto investors have been skeptical about this platform, and their most prominent question has been, “Is This Latest Blockchain Social Media Platform Attracting Many Investors a Scam or Not?”

So, what exactly are the specifics of this new social media trend?

Friend.tech, a blockchain social media platform, is a brand-new on-chain networking software that enables users to set up a profile and sell their “stocks” to their followers. Shareholders can communicate privately with another individual by purchasing their stock, allowing them to make money from that person’s popularity.

The freshly launched Ethereum layer-2 solution Base from Coinbase powers the software.

The cryptocurrency community embraced friend.tech when it first opened on August 10, 2023, and people even started fighting for invitation codes. Racer (@0xRacerAlt), the principal developer of TweetDAO and Stealcam, two other decentralized social networking ventures, created the platform.

Users must obtain an invitation code, link their Twitter account, and deposit at least 0.01 ETH on the Base network to use the site.

Users can either start their groups after logging onto the application or join groups other users have already started. The supply and demand for each group’s shares determines the price of each group’s shares.

Users can buy and sell group shares whenever it suits their needs and expectations. The owner of a group share can communicate with the creator and other group members by purchasing a share. The owner can leave the group and release their capital by selling their share.

Friend.tech Produces More Than $1 Million In Fees in A Day, Topping the Uniswap and Bitcoin Networks

Is This Latest Blockchain Social Media Platform Attracting Many Investors a Scam or Not?

On August 19, Friend.tech trumped established players in the crypto sector, such as Uniswap and Bitcoin networks, by generating over $1 million in fees in 24 hours.

Data from DefiLlama shows that Friend.tech has earned $2.8 million since its start and $1.12 million in fees in just 24 hours. With over 60,000 unique traders and over 650,000 transactions on the social platform, the project’s total revenue is $818,620.

A senior software engineer at Coinbase claims that Racer is the developer of the nonfungible tokens (NFTs)–based social media platforms TweetDAO and Stealcam. With Friend.tech, Racer targets Web3 projects looking to fortify relationships with venture capitalists and essential figures in the cryptocurrency business, as well as crypto influencers with a sizable fan base who may make royalties on trading fees.

The app contains a point-based reward system and a price structure as well. Each time users buy or sell group stock, they pay a 10% fee, of which 5% is for the group’s shareholders, and the remaining 5% is for generating revenue for the treasury. Users who help the app expand and improve by adding new users, starting popular groups, or offering suggestions and feedback get treasury revenue as their reward.

Critics Wonder If the Friends.Tech Hype Is Worth It

Is This Latest Blockchain Social Media Platform Attracting Many Investors a Scam or Not?

While many influential personalities in the cryptocurrency sector have commended the program for bringing thousands of people on-chain and motivating sign-ups from even non-crypto characters, such as gaming YouTuber Faze Banks and Russian protest group Pussy Riot, others are concerned that it may burn out.

Crypto critic Yazan told Cointelegraph that a combination of alarming indicators made him think that the app has six to eight weeks before share prices and overall activity start to decline.

Others, on the other hand, expressed a much more optimistic view of the new decentralized social media platform, applauding it for its ground-breaking innovations in UX for crypto applications—something that crypto app developers have long struggled to get right.

The co-founder of Jokerace and EcoDAO, David Phelps, called Friend. tech’s user experience (UX) “the greatest crypto has seen.”

Finally, regardless of the predictions about the sustainability of the application, there’s no denying that it has dazzled the crypto world. The program became the second-largest money generator among crypto protocols in less than two weeks. For the sake of the investors and developers of Friend.tech, one can only hope that the hostile critics are wrong.