The development team behind the social protocol FriendTech has achieved a remarkable milestone by generating close to $20 million in revenue within just a few months since its launch in August. FriendTech is a unique platform that allows users to connect their Twitter accounts and facilitates the buying and selling of influencer profile tokens, referred to as “keys,” using Ethereum (ETH) on the Coinbase-backed Layer 2 network, Base.
These keys provide privileged communication access to influencers, making it an innovative approach in the world of social media and crypto. In this article, we will delve into the success of FriendTech, its revenue model, and recent security challenges.
FriendTech leads in revenue
FriendTech has rapidly emerged as a frontrunner in the world of crypto, holding the title of the largest revenue-generating app on the Base network and the second-largest in the entire crypto ecosystem, as reported by DeFiLlama data. At its current growth rate, the platform is projected to achieve an annualized revenue of an impressive $180 million. The platform’s success is underscored by the fact that it has generated nearly $40 million in overall fees from its users.
These fees are primarily generated by taxing approximately 10% of the trading volume associated with social tokens on the platform. Half of the total fee collected is allocated to the project’s development team as revenue, while the other half is distributed among users whose keys are traded.
Unique features and challenges
FriendTech’s unique proposition lies in its ability to bridge the gap between social media and cryptocurrencies, enabling users to gain access to their favorite influencers. However, despite its meteoric rise in revenue, the platform has faced some significant challenges.
On October 3rd, two SIM swap incidents were reported, resulting in an alleged loss of 42 ETH, equivalent to $70,000. More recently, on a single day, four FriendTech users fell victim to similar attacks, leading to attackers securing gains of approximately $385,000.
Behind FriendTech’s success is the pseudonymous founder known as ‘0xRacer.’ The founder has personally earned over $440,000 from the platform, as reported by on-chain data aggregated on Dune. This substantial earnings figure underscores the platform’s ability to provide lucrative opportunities for both its users and its creator.
While FriendTech maintains its position as the top project in the SocialFi niche in terms of daily trading volume, there has been a notable decline in the number of unique users since late September, according to data from The Block. This trend is indicative of the competitive landscape in the crypto space and the emergence of similar applications attempting to replicate FriendTech’s success.
Conclusion
FriendTech’s extraordinary journey since its August launch highlights its position as a significant player in the intersection of social media and cryptocurrency. With nearly $20 million in revenue and a promising annualized revenue projection of $180 million, the platform has captured the attention of crypto enthusiasts and social media users alike. However, it is essential to acknowledge the platform’s security challenges, including recent SIM swap incidents, which underline the need for ongoing improvements to safeguard user assets and information.
