Friend.tech (FRIEND)

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Social Interaction and Monetization

Friend.tech is a decentralized social app where users buy and sell "keys" (formerly called "shares") linked to Twitter accounts. These keys give access to private group chats and exclusive content from the account owner. Users can join or leave these token-gated chats freely, creating flexible social interactions.

Creator Earnings and Trading

Creators earn a 5% fee each time their keys are bought or sold, while the platform takes the other 5%, totaling a 10% transaction fee. This system allows creators to monetize their influence and encourages trading activity of their keys. Users can also profit by trading keys based on demand and supply, similar to buying shares in a company.

Onboarding and Wallet Integration

Friend.tech offers easy onboarding by linking Twitter accounts and providing an embedded self-custodial wallet, simplifying the process of entering the Web3 space without complex wallet setups.

Platform Features and Growth

Built on Coinbase’s Base network, Friend.tech combines social networking with blockchain technology, enabling users to tokenize their social presence. It has attracted over 100,000 users and significant trading volume shortly after launch, showing strong early adoption.

Future Potential

The platform aims to create a new way for creators, influencers, and even small-time content producers to earn income by tokenizing their social connections, potentially integrating with broader decentralized finance (DeFi) markets.

Pros

• Unique monetization: Users can sell "keys" of themselves, allowing followers to invest and gain exclusive access to content and chats.
• Direct creator-follower interaction: Keys provide personalized communication on platforms like X (formerly Twitter) and Telegram.
• Embedded wallet and easy onboarding: New users can join without complex crypto setup steps.
• Decentralized social platform: Community governs social spaces using keys.
• Integration with blockchain: Offers secure, private messaging and control over content access.
• Popular among crypto influencers and celebrities, enhancing engagement.
• Progressive Web App and mobile app availability for accessibility.
• Potential for users to profit from trading keys if their value increases.

Cons

• Key prices are highly volatile, leading to speculative trading.
• Potential for downward price spirals if user engagement declines.
• Monetization model may encourage user turnover rather than stable relationships.
• Reliance on blockchain technology can be a barrier for those unfamiliar with crypto.
• Concerns about data privacy and permissions linked to X accounts.
• Market manipulation risks and pressure on creators to continuously produce content.
• Some community members view the platform with caution due to its rapid hype and uncertain long-term sustainability.
• Price of Friend.tech tokens has experienced significant declines recently.
• Ethical concerns about the concept of buying and selling shares of people.

Founders

Friend.tech was co-founded by two pseudonymous developers known as 0xRacerAlt and Shrimppepe.

Background

Before creating Friend.tech, they were involved in a Web3 social platform called Stealcam, which they later rebranded to Friend.tech.

Connections

The founders have controversial ties to a failed NFT project named Kosetto, with evidence showing their active participation in Kosetto’s community and some deleted social media links connecting them to that project.

Location and Launch

Friend.tech was founded in 2022 and is headquartered in San Francisco, CA.

Investors

Friend.tech has one main institutional investor: Paradigm. Paradigm invested in Friend.tech during its Seed funding round on August 19, 2023. Paradigm is a venture capital firm based in San Francisco, United States.

Funding Rounds

Friend.tech has raised funds through a single Seed round, with Paradigm as the lead investor. Another venture firm, Notation Capital, also participated in the seed round. The exact amount raised has not been publicly disclosed.

Investor Actions

The investors in Friend.tech have agreed to waive their rights to sell tokens to users, giving users full control over their tokens. This move was seen as a positive step toward creating a user-controlled currency within the platform.

Additional Notes

• Paradigm’s involvement adds credibility to Friend.tech as an innovative project in the Web3 social media space.
• Despite some challenges and fluctuations in token value, Friend.tech attracted attention from high-profile crypto investors and industry figures.

Halal Status of Friend.tech

• No: Friend.tech is a decentralized social token platform where users buy and sell shares (called "keys") of other users to access private chats and exclusive content.
• Reason: The platform operates like a speculative trading marketplace with fees and profit-sharing, resembling a trading or investment scheme rather than a straightforward service or product. This speculative nature and trading of shares linked to personal influence do not align with halal principles in Islamic finance.