By using this site, you agree to the Privacy Policy and Terms of Use.
Accept

News Junction

Notification Show More
Font ResizerAa
  • Home
  • World News
    World NewsShow More
    US Army to change transgender soldiers’ records to birth sex
    US Army to change transgender soldiers’ records to birth sex
    May 21, 2025
    UK escalates action against Israel over Gaza offensive
    UK escalates action against Israel over Gaza offensive
    May 21, 2025
    Former Ukrainian politician living abroad shot dead on school run | World News
    Former Ukrainian politician living abroad shot dead on school run | World News
    May 21, 2025
    Why Poland is Critical – For Ukraine and Europe’s Defense 
    Why Poland is Critical – For Ukraine and Europe’s Defense 
    May 21, 2025
    Japan farm minister Taku Eto quits after gaffe over free rice | Politics News
    Japan farm minister Taku Eto quits after gaffe over free rice | Politics News
    May 21, 2025
  • Business
    BusinessShow More
    Ukraine blows up bridges to consolidate its positions in Russia
    Ukraine blows up bridges to consolidate its positions in Russia
    August 18, 2024
    Commentary: AI phones from Google and Apple will erode trust in everything
    Commentary: AI phones from Google and Apple will erode trust in everything
    August 18, 2024
    The most famous Indian Dishes – Insights Success
    The most famous Indian Dishes – Insights Success
    August 18, 2024
    Life on the road as a female long rides cyclist
    Life on the road as a female long rides cyclist
    August 18, 2024
    UK inflation rises to 2.2%
    UK inflation rises to 2.2%
    August 18, 2024
  • Cryptocurrency
    CryptocurrencyShow More
    Bank lobby is ‘panicking’ about yield-bearing stablecoins — NYU professor
    Bank lobby is ‘panicking’ about yield-bearing stablecoins — NYU professor
    May 22, 2025
    How to Report Crypto Trading Gains and Losses on Your Balance Sheet
    How to Report Crypto Trading Gains and Losses on Your Balance Sheet
    May 21, 2025
    Astar Network scores Animoca Brands partnership: will ASTR price surge?
    Astar Network scores Animoca Brands partnership: will ASTR price surge?
    May 21, 2025
    XRP market cap grows 1.9% in Q1 2025 as XRPL adoption surges
    XRP market cap grows 1.9% in Q1 2025 as XRPL adoption surges
    May 21, 2025
    SHIB Forecast: Can It Reach alt=
    SHIB Forecast: Can It Reach $0.01 or Will Ozak AI Deliver Bigger 100x Returns?
    May 21, 2025
  • Technology
    TechnologyShow More
    How to Improve Your Spotify Recommendations
    How to Improve Your Spotify Recommendations
    August 18, 2024
    X says it’s closing operations in Brazil
    X says it’s closing operations in Brazil
    August 18, 2024
    Supermoon set to rise: Top tips for amateur photographers | Science & Tech News
    Supermoon set to rise: Top tips for amateur photographers | Science & Tech News
    August 18, 2024
    Scientists Want to See Videos of Your Cat for a New Study
    Scientists Want to See Videos of Your Cat for a New Study
    August 18, 2024
    OpenAI’s new voice mode let me talk with my phone, not to it
    OpenAI’s new voice mode let me talk with my phone, not to it
    August 18, 2024
  • Entertainment
  • Sports News
  • People
  • Trend
Reading: Friend.tech hype unsustainable? Critics give it only months to live
Share
Font ResizerAa

News Junction

  • World News
  • Business
  • Technology
  • Cryptocurrency
  • Trend
  • Entertainment
Search
  • Recent Headlines in Entertainment, World News, and Cryptocurrency – NewsJunction
  • World News
  • Business
  • Cryptocurrency
  • Technology
  • Entertainment
  • Sports News
  • People
  • Trend
Have an existing account? Sign In
Follow US
News Junction > Blog > Cryptocurrency > Friend.tech hype unsustainable? Critics give it only months to live
Friend.tech hype unsustainable? Critics give it only months to live
Cryptocurrency

Friend.tech hype unsustainable? Critics give it only months to live

Published August 21, 2023
Share
6 Min Read
SHARE

Friend.tech, a new decentralized social media (DeSo) app has rapidly become one of the hottest new things in crypto, with over 64,000 new users and more than 24,000 ETH in trading volume since its beta version launch of Aug. 11. 

While many crypto industry heavyweights have praised the app for bringing thousands of people on-chain and inspiring sign-ups from even non-crypto figures — such as gaming YouTuber Faze Banks and Russian protest group Pussy Riot — some have warned it’s at risk of burning out.

Built on Coinbase’s layer-2 network Base, friend.tech is a platform that allows users to purchase shares of their friends and influencers, which in turn grants them access to a private chat with that user.

Speaking to Cointelegraph, crypto commentator Yazan pointed out a number of troubling factors that led him to believe the app has between six and eight weeks before both share prices and general activity begin to nosedive.

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. pic.twitter.com/TJqcktEM6P

— Yazan (@YazanXBT) August 20, 2023

Yazan argued there has been an unsustainable rate at which share prices have increased.

“The fucked up market making that guarantees that the app makes the most money along with creators — the price goes up too fast,” he said.

“How come there’s 100 holders and the price is 1 ETH — 1 ETH to be able to see a private chat?”

According to pseudonymous software engineer Cygaar in an Aug. 20 X thread, the price of someone’s shares  on friend.tech is proportional to the square of the outstanding supply. As the supply increases, the price increases exponentially.

It looks daunting, so let’s simplify it. Let’s assume that you only want to buy/sell a single share (amount = 1). This is also known as the spot price.

Using our middle school algebra skills, we can expand out the function and we’ll get:

price = supply^2 / 16000

— cygaar (@0xCygaar) August 19, 2023

Drawing parallels to BitClout — a predecessor DeSo app from 2021 — pseudonymous Web3 marketer Legendary shared his bearish prediction on the longevity of Friend.tech.

“Absolutely not. I think the platform will collapse as BitClout did. We are in a bear market, and there’s nothing to do. Everyone jumps on an opportunity to make money, but I think the platform will be done within the next weeks to months,” he wrote.

The bull case for friend.tech

Others however, shared a far more positive outlook on the new decentralized social media platform, praising it for its novel developments in UX for crypto applications — something that crypto app developers have long struggled to get right.

David Phelps, cofounder of Jokerace and EcoDAO, described Friend.tech’s UX as the “greatest crypto has seen,” pointing to three main factors as to why the app was such a significant breakthrough for crypto.

Firstly, the app doesn’t require users to download via an app store account, which points more strongly to the idea of decentralization. Secondly, it bridges the funds to the app automatically, reducing the need for convoluted transactions.

Finally, the app allows users to deposit their ETH once and then buy and sell shares without ever having to sign a transaction again. The constant need to verify transactions via Metamask signatures has been a major criticism of many DApps in the crypto space.

Related: Friend.tech generates over $1M fees in 24h, surpassing Uniswap, Bitcoin networks

Regardless of the varied predictions concerning the app’s future success or failure, there’s no denying that it has taken crypto by storm.

On Aug. 19, Friendtech announced that it had received seed round funding from crypto venture capital firm Paradigm, sparking a wave of speculation over a future airdrop and potential token launch.

Earlier this year, we partnered with @paradigm to build tools for new online social interactions.

We’re grateful for the community’s warm reception and excited to continue growing with you all pic.twitter.com/yINDMXkpuZ

— friend.tech (@friendtech) August 18, 2023

According to data from DefiLlama, Friend.tech has generated $1.42 million in fees in the last 24 hours, and $4.2 million since its public launch.

Total Friend.tech fees and revenue since launch. Source: DeFiLlama

At the time of publication, the total revenue for the project stands at $1.88 million, and has witnessed over 724,000 transactions from more than 64,500 unique traders.

Magazine: Blockchain games aren’t really decentralized… but that’s about to change

#Friend.tech #hype #unsustainable #Critics #give #months #live

- Advertisement -
TAGGED:criticsFriend.techgivehypeLivemonthsunsustainable
Share This Article
Facebook Twitter Pinterest Whatsapp Whatsapp LinkedIn Email Copy Link Print
Share
What do you think?
Love0
Sad0
Happy0
Sleepy0
Angry0
Dead0
Wink0
Previous Article Tenerife wildfire that’s forced thousands from homes was started deliberately, say officials | World News Tenerife wildfire that’s forced thousands from homes was started deliberately, say officials | World News
Next Article MLB roundup: Red Sox hand Yanks 8th straight loss MLB roundup: Red Sox hand Yanks 8th straight loss
- Advertisement -

Latest Post

Bank lobby is ‘panicking’ about yield-bearing stablecoins — NYU professor
Bank lobby is ‘panicking’ about yield-bearing stablecoins — NYU professor
Cryptocurrency
US Army to change transgender soldiers’ records to birth sex
US Army to change transgender soldiers’ records to birth sex
World News
How to Report Crypto Trading Gains and Losses on Your Balance Sheet
How to Report Crypto Trading Gains and Losses on Your Balance Sheet
Cryptocurrency
UK escalates action against Israel over Gaza offensive
UK escalates action against Israel over Gaza offensive
World News
Astar Network scores Animoca Brands partnership: will ASTR price surge?
Astar Network scores Animoca Brands partnership: will ASTR price surge?
Cryptocurrency
XRP market cap grows 1.9% in Q1 2025 as XRPL adoption surges
XRP market cap grows 1.9% in Q1 2025 as XRPL adoption surges
Cryptocurrency
- Advertisement -

You Might Also Like

SEC Files Fraud Charges Against Promoters of NovaTech, Alleged 0M Crypto Pyramid Scheme
Cryptocurrency

SEC Files Fraud Charges Against Promoters of NovaTech, Alleged $650M Crypto Pyramid Scheme

August 13, 2024
Can Bitcoin (BTC) sustain its rally? Investors bet big on Rebel Satoshi (RBLZ) DEX launch
Cryptocurrency

Can Bitcoin (BTC) sustain its rally? Investors bet big on Rebel Satoshi (RBLZ) DEX launch

February 18, 2024
French gloom clouds Paris Olympics, six months from start
Sports News

French gloom clouds Paris Olympics, six months from start

January 22, 2024
Is Kelly Ripa Ready to Retire From Live? She Says…
Entertainment

Is Kelly Ripa Ready to Retire From Live? She Says…

August 17, 2023

About Us

NEWS JUNCTION (NewsJunction.xyz) Your trusted destination for global news. Stay informed with our timely and accurate reporting on diverse topics, including politics, technology, science, entertainment, sports, and more. Count on us for unbiased and reliable updates at your fingertips.

Quick Link

  • About
  • Disclaimer
  • Privacy Policy
  • Terms of Use
  • Contact

Top Categories

  • World News
  • Business
  • Technology
  • Entertainment
  • Cryptocurrency
  • Sports News
  • Trend
  • People

Subscribe

Subscribe to our newsletter to get our newest articles instantly!

    © 2023 News Junction.
    • Blog
    • Advertise
    • Contact
    Welcome Back!

    Sign in to your account

    Username or Email Address
    Password

    Lost your password?