On August 21, daily transaction fees in Web3-social network Friend.Tech rose to $1.4 million, ranking third after Ethereum and Lido.
According to the Dune dashboard, since the beta launch the platform has attracted 65,000 unique users with a trading volume of $26 million.
Friend.Tech is a decentralised social application integrated with X (formerly Twitter), enabling the trading of tokenised user shares. The protocol is built on the L2-network Base from Coinbase.
The project has already attracted notable participants, including Y Combinator’s CEO Garry Tan and NBA player Grayson Allen.
Despite rapid popularity, some in the crypto community criticised Friend.Tech. A user going by the pseudonym Yazan stated that the app has six to eight weeks before the prices of the shares and overall activity begin to fall sharply.
Among the project’s drawbacks, they highlighted “ridiculous” pricing, a non-functional group chat, and the risks of a pump-and-dump scheme pump-and-dump.
“I think the platform will crash, as BitClout did. We are in a bear market, and there’s nothing to be done. Everyone is grabbing at the opportunity to make money, but the project will crash in the coming weeks or months,” wrote the marketer going by the handle Legendary.
According to programmer Cygaar, the price of any shares on Friend.Tech is proportional to the square of the outstanding supply. As demand grows, their price rises in geometric progression.
In July, Bluesky — a decentralised alternative to X, supported by the co-founder and former CEO of the social network Jack Dorsey — closed a seed financing round of $8 million.