- There is an upsurge in social finance protocols that provide much more capability than the initial FriendTech app.
- But would these features be sufficient to displace FriendTech, let alone popular programs like X?
The newest trend in cryptocurrency, social finance platforms, is beginning to test out more features in an effort to discover a strong product-market fit. Only they might find it difficult to separate themselves from the aspect of financial speculation that gave rise to their first success.
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FriendTech, a company built on Coinbase’s Base platform, was the first to usher in this new era of social banking. It offers a location where users may purchase keys that grant them entry to the private group conversations of influencers. The cost of the keys is based on a bonding curve, which means that the more are purchased, the more expensive they become. The real kicker is that each transaction has a 10% fee that is paid equally between the platform’s inventor and the influencer.
This naturally sparked a wave of financial speculation. Leading cryptocurrency influencers like Hsaka, Cobie, and Dingaling climbed the ranks and amassed hundreds of thousands of dollars in fees, with the platform’s founder Racer earning $450,000 from those who traded their keys. Influencers have made $20 million in total from fees on the app, and Racer has also received a similar sum.
What makes FriendTech unique is that while being by far the most successful social finance app—in large part because it was the first to use this particular recipe—it is still a very young program. The only other features of the application are the ability to swap keys and post in group chats.
FriendTech has, however, offered surprisingly few new functions. Instead, new software has emerged with a wider range of social and financial features.
Increasing both social and financial impact
To begin with, PostTech, a clone of X (before Twitter), was located in Arbitrum and introduced posting to a broad feed. This is intriguing because, assuming that these platforms progress beyond being passing trends, a relatively simple capability opens the door for crypto Twitter to become a social financial tool.
Avalanche-based the second-largest such site, StarsArena, is currently reopening after a pricey problem forced its shutdown. It has a tipping feature, among other things. This straightforward functionality enables users to receive payment directly for their public messages on the platform’s own X-like feed.
The Arbitrum-based CipherRIP is experimenting with ways to entice users to purchase more keys, or cores as it calls them, even though this isn’t exactly a new feature. To send a message, known as a cipher, on its public feed, new users must purchase at least five cores. Although there is a chance that it will discourage new users from trying it out, this could lead to increased trade.
Trying different financial strategies
Then there is New Bitcoin City, a Bitcoin Layer 2 NOS-based project that isn’t a FriendTech knockoff but rather a social layer with comparable features that also permits keyholders from other social finance protocols to utilize the same keys on their app. In terms of the features it provides, it is even more revolutionary.
Along with the group chat that the key accesses, the application also provides direct messages (DMs) between influencers and the people who have their keys. Furthermore, it enables influencers to play games with the keyholders they control and pay them “red packets”—basically, money to acquire more keys for them.
Influencers can determine the price they charge for key purchases and sales (between 0-8%), as well as the number of keys required to access their group chat, in terms of finances.
In addition, New Bitcoin City incorporates a well-known strategy called (3,3), which gets its name from the Olympus Protocol’s game theory component. In this strategy, users of social finance apps buy one other’s private keys in an effort to increase both their valuations and potential fee income. With the help of the app’s function, you can send a (3,3) request to lock each other’s keys for 30 days.
“Creating a [FriendTech] fork or additional socialfi app is not our aim. The social layer for crypto/web3/the next decentralized web is what we want to create, next Bitcoin City stated via DM on its app. “So that’s the reason we invest a lot into building ‘circle utilities’ so people can actually do things together rather than just speculating on key prices.”
Even if the latest crop of FriendTech-inspired programs provide fresh features and possibly superior user experiences, this may not be enough to ensure their success. If FriendTech’s social gambling component is what’s most important, it might be difficult for other smaller casinos—which is how you could describe them—to compete for their patronage.
However, some people are already aiming higher than even that high objective.
For instance, at [New Bitcoin City], we don’t want to compete with FriendTech and its forks. We want to compete with X, Meta, Tiktok, etc. We are utilizing a cryptocurrency app that resembles a standard consumer app for the first time,” they claimed. “I think crypto is ready for the masses now.”
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