Benzinga - Friend.tech’s revenue model shows how decentralized platforms can earn higher revenues. Sniper bots, attractive TVL and efficient algorithms could all decide the future of the decentralized social media platform.
What Happened: Created on Coinbase’s Layer 2 protocol, Base, Friend.tech peaked at new growth levels in revenue alongside total value locked on its platform.
Dune Analytics data indicated Friend.tech’s revenue at around 10,870 Ethereum (CRYPTO: ETH) and total value locked (TVL) of over 30,000 Ethereum led by expansion in communicative transactions on the platform surging to more than 9.2 million.
The app faced criticism for its revenue model. Crypto commentator Yazan stated on X: "Let me tell you one thing. Something isn’t right about @friendtech. Creators making money from a group chat that doesn’t even work when you can’t even reply directly to people? The way pricing works is ridiculous and can be easily taken advantage of. Pumps and dumps."
Also Read: Friend.tech's Popularity Skyrockets As Platform Rakes In Millions In Fees
Why It Matters: Launched in August 2023, Friend. tech enables users to swap keys associated with X (formerly known as Twitter) accounts belonging to their friends or influencers. The keys enable access to private in-app chatrooms and exclusive content provided by the respective X user. Within a few hours of launch, the app chased established players like Uniswap in terms of total fees.
Sniper Bots which are more than 450 have led to generating profits crossing $5.9 million accounting for a significant 34% of the total Friend.tech revenue, as reported by CoinGape. This clearly indicated the platform’s efficient algorithms and its potential for automated trading solutions in the DeFi domain.
In the last week of September, Bitcoin launched its own community-based social token ecosystem, Alpha which will enable users to monetize their online persona and content creation through its social tokens.
Find out more on such decentralized social media platforms — join Benzinga's Fintech Deal Day & Awards on Nov. 13 and Future of Digital Assets on Nov. 14 in New York City to stay updated on trends like AI, regulations, SEC actions, and institutional adoption in the crypto space. Secure early bird discounted tickets now! What’s more, use BZCRYPTO code to get 20% OFF.
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