The Base is a layer constructed by the Coinbase team that has been mainnet for a considerable amount of time and has gained tremendous support from developers and the community. One of the most prominent projects on this layer is Friend.tech, which has attracted a significant number of users. Let us delve further into this project and uncover its details in this article, courtesy of 247btc.net.
What is Friend.tech?
Friend.tech is a social networking application that is built on Layer 2 Base and utilizes a user database taken from X (Twitter). As a result, new users of Friend.tech will not have to set up their information from scratch.
Thanks to the utilization of a novel mechanism and the attraction of numerous influential individuals to use their product, Friend.tech achieved a remarkable user milestone of hundreds of thousands. Additionally, tens of thousands of ETHs were transferred onto their platform, and at times, the daily transaction volume even exceeded that of NFTs.
The operational mechanism of Friend.tech
Friend.tech is a platform that enables users to engage in private conversations with Key Opinion Leaders (KOL). However, in order to initiate a conversation with any KOL on Friend.tech, users are required to purchase a “key” specific to that celebrity. It is noteworthy that Friend.tech predominantly operates on this model.
In essence, a key is no different from an ERC token, but its information is stored off-chain, and its total supply is subject to fluctuations based on market demand from users. KOL is the key issuer, but it has no authority to mint keys on its own and must purchase them in the market like any regular user.
The sale and purchase of keys on an AMM DEX is not permissible like other regular tokens. Accordingly, the price of keys is computed using a boarding curves formula as follows:
y = x^2 / 16000
- y: Is the price of the key, calculated in ETH.
- x: Is the total supply of key tokens at the present time (x can change up or down depending on the number of keys bought or sold).
For the purpose of enhanced comprehension, an illustration will be provided as follows:
- As of today, KOL A has 100 key owners, which translates to a key price of 0.625 ETH for the subsequent buyers based on the formula: 100 squared divided by 16,000.
- In the event that the quantity of key purchasers surges to 120, the price of the key shall be determined as follows: 120^2/16000 = 0.9 ETH.
- However, in the event of an increase in the number of key sellers and a decrease in total supply by 80 units, the price of the key shall be calculated as 0.4 ETH using the formula 80^2/16000.
Furthermore, for each transaction of key trading on Friend.tech, a 10% fee will be imposed on the total transaction volume and distributed according to the following, in accordance with technical protocols and formal protocols
The utilization of Friend.tech presents an opportunity with potential benefits
Although Tuy Friend.tech has gathered a considerable amount of users for their product, in comparison to other social projects, it still remains relatively low. As a result, we will be presented with numerous opportunities, such as the following:
- Invest in keying big KOLs early at a much cheaper price.
- Become a KOL with quality content and receive key buyer and seller transaction fees.
- Opportunity to receive airdrops in the future when the project launches tokens.
The utilization of Friend.tech incurs a certain degree of risk
Although holding significant potential, individuals must duly consider pertinent issues involved in the utilization of the Friend.tech platform, including but not limited to:
- The potential for fraudulent activities is substantial, as unscrupulous entities may impersonate renowned Key Opinion Leaders (KOLs) to entice consumers to purchase keys. Consequently, it behooves individuals to exercise due diligence by conducting meticulous checks prior to engaging in transactions.
- Potential security risks exist as the project is relatively new and has not yet undergone a thorough audit, thereby leaving the possibility for future occurrences of security and information vulnerabilities
What is the reason for the sudden surge in the growth of Friend.tech?
The first aspect that cannot be overlooked is the fact that this platform will conduct airdrops for its users in the form of points every Friday. Although Friend.tech has not yet announced the primary intended use for these points, the community has speculated that they will likely serve as criteria for receiving tokens in the future.
Subsequently, the announcement of Paradigm’s seed round investment project has been made known, albeit without any formal public disclosure from either party involved. Nonetheless, some members within the investment fund have quietly confirmed the aforementioned investment.
Recently, Friend.tech has released a new update that allows Key Opinion Leaders (KOLs) to upload pictures on their private chat groups. This step has attracted a significant number of KOLs from the traditional market, especially those who transitioned from using OnlyFans to Friend.tech. This has resulted in a considerable amount of their fan base following them to the platform.
The Friend Index serves as the cornerstone of the Friend.tech ecosystem and has been established with two primary objectives as follows:
- After acquiring the key of the famous individual, the contents pertaining to the project were disseminated to the key holders themselves.
- It is requested that the airdrop rewards distributed by Friend.tech be shared amongst all key holders.
Overall, the concept of Friend Index appears to be highly innovative and imaginative as it effectively transfers almost all the benefits that users previously received from Friend.tech. Additionally, given that the project has already received over 43,000 airdrop points, users have also demonstrated a significant fear of missing out (FOMO) and are willing to purchase and drive the price of key up to 1.85 ETH.
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