DEVELOPMENT

Basechain's Hottest Application! Decentralized Social Network Friend.Tech Airdrop Strategy and Beginner's Guide

2023/8/22

This article is reproduced from "Daily Coin Research", written by Alvin

With over $500,000 in revenue within two days of launch, what is the decentralized social application Friend.tech that is causing a frenzy with invitation codes? Is the Onchain Summer of Base Chain really coming?

Friend.tech is a decentralized social application (SocialFi) built on the Layer 2 network Base just launched by Coinbase. Users need to bind their Twitter accounts to use the platform. Each account on the platform has its "social value" displayed in Shares, similar to stocks. After purchasing Shares of different accounts, users can engage in private one-on-one conversations with those accounts.

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Some say Friend.tech is like a text version of OnlyFans, while others believe Friend.tech will replace the popular Alpha Group model on Discord. The author agrees with both concepts.

First, let's take a look at the astonishing data of Friend.tech, which has been online for 4 days

Number of users: Over 18,000 users have created accounts
Weekly trading volume: 6,900 ETH
Revenue from trading Shares: Over 300 ETH
Set a record of exceeding 4,000 ETH in daily trading volume on August 11
Recorded 260,000 on-chain transactions
Generated revenue exceeding $600,000 in the first week of launch

https://defillama.com/protocol/friend.tech

Table of Contents

How to Install the Friend.tech App

Register via the URL https://www.friend.tech, follow the instructions to start using it on your mobile home screen
Register via phone, Gmail, or Apple account
Link your Twitter account
Generate your wallet address, please note that you need to transfer at least 0.01 ETH to this Base chain address before you can start trading
Initially, the system will allow you to buy your own Shares for free, then you can explore accounts you are interested in through "You Shares," "Trending," "Top," and "Most Active."

You Shares: You can see all the related trading records of the Shares you own
Trending: Similar to the NFT market, the accounts with the highest popularity will appear here
Top: Accounts with the highest value in the market, for example, Cobie once had a single Share value of over 2e, which is quite exaggerated
Most Active: Active accounts, the assets traded frequently by these accounts may provide some clues to consider

Earning Money as a Friend.tech User Is Not Easy

In fact, the threshold for playing Friend.tech can be said to be not very friendly to general novice retail investors. The author has been using it daily since its launch on the app, and will guide you through the risks and usage thresholds layer by layer.

⚠️ Risk 1: You must first know which accounts are active on Twitter and which accounts have influence

Currently, the accounts on the leaderboard are mainly from Europe and the United States, and you need to be familiar with KOLs on Twitter.

In simpler terms, if you finish looking at the leaderboard and don't recognize anyone, you may need to stop thinking about making money on Friend.tech because it's really not as simple as you might imagine.

⚠️ Risk 2: You need to know if these KOLs are truly committed to managing Friend.tech seriously, or if they are just testing the waters?

After a few days of experience, it was found that many KOLs with a large number of followers opened Friend.tech accounts but were not willing to interact with the community. The inevitable outcome is that holders will sell off, and in this application, the "how much value people think you have on social media" is clearly reflected.

Of course, you can also create new accounts specifically to join while buying some cheap shares to try your hand at short-term trading. However, the buying and selling price range designed by Friend.tech at the beginning may be to prevent this situation. For the author, short-term profits are very difficult, and the focus should be on using the application's mechanism to help select

"KOLs who are truly willing to interact with the community and are interested in managing the value of their own Shares."

Once you start to see patterns, you may also start figuring out how to filter out useful information for yourself on Twitter.

⚠️ Risk 3: After you buy a Share, the book value needs to increase by 30% to start making a profit

The price of each share increases exponentially as the number of buyers increases, and imagine your portfolio facing daily fluctuations of around 2.30%, which is not very user-friendly for the average user.

Speaking of profits, let's first look at the calculation formula for Shares: Price in ETH = supply ^ 2 / 16000

From the above chart, Shares increase from 1 (0.0000625 ETH) to 10 (0.00625 ETH), which is a 100-fold increase in book value! However, in this process, you may face price fluctuations of over 2.30% at any time.

If the value of your Shares is currently 0.085 ETH, what you will actually receive when you sell is only 0.081 ETH.

Is Friend.tech the Text Version of OnlyFans? Will it Replace Discord Alpha Groups?

After buying different Shares, remember that you cannot interact with other holders. You will see the account seemingly talking to themselves because only that account can interact with all Shareholders. This is why Friend.tech is jokingly referred to as the text version of OnlyFans (@Irenezhao_ recently stated in the app: Why can't I post photos yet?)
During the author's experience in the past few days, it is true that some people will share alphas in their message boards with holders, and even see them using royalties to buy their own Shares (which is the repurchase method favored by project teams)
More gameplay? Redirect from Twitter and Discord, give alphas in the private Friend.tech chat box, this could potentially replace a large portion of the alpha pass market share, help you set up profit-sharing mechanisms, you can also repurchase the floor, and there are also airdrop earnings...?

Friend.tech's Income is Substantial, Expected Airdrops are a Key Factor?

It is amazing to see that Friend.tech can generate such substantial income at the beginning of its launch

Total trading volume: approaching 6900 ETH
Transaction fee commission (10%): 690 ETH
Protocol revenue: 345 ETH
User share: 345 ETH

Compared to the current top NFT trading volumes, it can also rank in the top three

If you are a user who is still observing, perhaps you can consider August 18 as a turning point because most of the current active users may have stayed on due to the expected airdrops.

In other words, if the team is truly willing to continue distributing protocol revenue as airdrops to users, more users will definitely join to see the potential benefits. Conversely, if the airdrop incentives are not as clear, the number of users using the platform will surely decrease sharply after the airdrop distribution.

Reference:

https://dune.com/domo/friendtech

https://dune.com/msilb7/friendtech-on-base-activity