SocialFi platform Friend.tech went viral across Twitter after rolling out its beta on August 11th but since then, has been declared ‘dead’ by some media outlets after its volume and inflows declined.
Cointelegraph, CryptoNews, and even sites outside of the cryptocurrency space, such as TechCrunch, have run headlines on how the ‘hyped decentralized social app’ is losing steam and ‘dead,’ with tanking activity and a 95% drop in transactions.
What Is SocialFi?
SocialFi combines decentralized finance (DeFi) with social media, adding a way for social media users to earn rewards in cryptocurrency.
In the spirit of decentralization, it also involves retaining ownership of their content and data – unlike traditional social media platforms that own users’ personal information and often fail to safeguard their privacy.
How Does Friend.tech Work?
Below is an introduction to Friend.tech from new analytics platform Launchpad.xyz, which combines aspects of SocialFi, revenue sharing and a trading dashboard.
Built on Coinbase’s new blockchain Base, Friend.tech is a trending SocialFi platform that intertwines social media with its innovative share-based system.
Friend.tech is not downloadable on the App Store or Google Play to avoid iOS and Android regulations and having to share revenue with those centralized companies.
To use Friend.tech, new users instead create an account on Friend.tech with their Twitter (X) profile, in a simple registration process.
They then issue shares of themselves and allow followers to invest in them, which grants the shareholders the ability to send them private messages.
The value of a user’s shares rises as the demand for access to a user’s DMs increases – for example if an account is sharing valuable trading alpha exclusively for their shareholders.
Friend.tech vs Other Platforms
Platforms like X’s ‘subscribe’ feature, Patreon, or SubscribeStar allow followers to access exclusive content by paying a regular subscription fee.
In contrast, Friend.tech involves ways for followers to profit by buying shares in the creators they enjoy, and later selling those shares in the future if they wish when their value has appreciated. The direct messaging features also afford a greater level of direct contact than typical platforms.
Is Friend.tech Dead?
Friend.tech deducts a 5% fee for every share transaction. This approach proved profitable initially, as it earned the creators Ethereum equivalent to $1M in a single day.
Since its launch last month Friend.tech activity has dropped, causing some crypto news sites to ask if interest in Friend.tech will die out.
Terence Ribaudo, CEO of Launchpad.xyz commented:
‘Friend.tech presents a fascinating integration of social media and share-based interactions, potential users should weigh the benefits against the evident concerns before diving in.’
‘At Launchpad we are integrating reputational rewards and profit share into the tapestry of our ecosystem, allowing anyone to participate in anything that can generate yield through our fractionalized asset decentralized exchange.’
‘This allows anyone to know the real world current value/earnings and make informed decisions on what could generate the best yield.’
Alongside their upcoming SocialFi and revenue-sharing aspects similar to Friend.tech, the Launchpad.xyz platform is also home to a suite of analytics tools and trading signals.
Their Telegram channel (beware of impersonators, admins will not DM you) opened a short position on Bitcoin at $28,115 on August 29th – just before its dump to retrace the Grayscale Bitcoin ETF news-driven pump.
Recently the team opened a challenge account valued at $20,000 and is regularly updating their progress in the channel as an example of how to build a crypto bankroll.
That channel is free to join now throughout the project’s ongoing token presale.
The Launchpad.xyz presale also offers a token bonus for investors in its native coin LPX which functions as the subscription fee to unlock all its features.
Read more Launchpad.xyz and its approach to revenue sharing and SocialFi at the official website below.
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