Friend.tech, a social tokenization platform constructed on Base, has obtaind a big milestone with a $50 million Total Value Locked (TVL) as of September 3, 2023. This groundbreaking undertaking empowers users to create and commerce their personal tokens primarily based on their social affect.
According to data from Dune Analytics, Friend.tech has been persistently generating round $1.1 million in charges every day since September 8, 2023. This surpasses the charges generated by different prominent crypto platforms similar to Bitcoin, Opensea, and MakerDAO.
Friend.tech’s Growth and Revenue
Friend.tech was launched on August 10, 2023. It swiftly gained reputation amongst crypto fanatics and influencers. the undertaking has attracted exceptional TVL development, establishing itself as one of many massivest initiatives on Base. The platform’s excessive demand for keys has subsequently generated vital buying and selling quantity and fees.
Read additionally: Solana On An Unstoppable Rally to $25, DeFi TVL At 2023 High
The protocol shops its income in an externally owned account (EOA), accumulating over 11,000 ETH ($18 million) as of September 3, 2023. Despite this substantial quantity, there have been no expenditures from the deal with yet, leading to raised questions regarding treasury utilization and governance.
Key Fees and User Challenges
Friend.tech presents a singular and thrilling alternative to monetize social media interactions. However, it presents challenges and dangers for its customers. One such problem is the minimal deposit requirement of 0.01 ETH (~$20) to create a key, which can discourage potential users from becoming a member of the platform.
Read additionally: Major Theft At Friend.Tech Protocol Raises Doubts About Decentralization
Moreover, in order to interrupt even, a user would want at the very least eight merchants buying their key—an arduous activity for less in style or new creators. Another hurdle is the uneven distribution of earnings amongst key creators.
Statistical knowledge point outs that amongst all royalties distributed, the highest 30 creators have claimed 15% whereas round 183,657 users possess fewer than two circulating keys – incomes a median revenue beneath $1.
Nonetheless, there are alternatives for Friend.tech customers to develop their viewers and revenue on the platform as nicely. For occasion, they’ll take part within the referral program when inviting new customers to earn them rewards—a percentage of their key transactions.
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