Friend.tech Fees Stands Toe To Toe With Bitcoin, But Critics Are Not Impressed

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The brand new decentralized social media app Good friend.tech has made waves up to now week and has taken the crypto world by storm. Inside two weeks of its launch, buying and selling charges from the social media app have grown to rival high cryptocurrencies like Bitcoin and Tron as crypto lovers rush to examine what the platform provides. Nevertheless, some critics argue that is unsustainable and can alter as soon as the joy surrounding the app begins to wane.

Good friend.tech 24-Hour Charges Climb To $1.4 Million

Good friend.tech is the most recent decentralized social media app on this planet of cryptocurrencies. Working on Coinbase’s Layer 2 Base chain, the social media app permits customers to commerce tokenized shares of different customers’ profiles utilizing ETH. The decentralized software (DApp) is built-in with X (previously Twitter), permitting customers to hyperlink their account to X, which is then represented by social tokens on Good friend.tech.

The app expenses a ten% charge each time a person buys the shares of one other person the place 5% goes to the protocol, whereas the opposite 5% goes to the individual whose shares are being traded. As share shopping for ramps up, information from DeFiLlama exhibits that buying and selling charges on the social media app have grown quickly up to now 24 hours.

On-chain information present the protocol making $1.42 million in a 24-hour interval, surpassing the charges of mainstream chains like Bitcoin, Tron, and BSC, and DEXes like PancakeSwap and Uniswap, in the identical time interval. This may imply that customers have additionally made roughly $580,000 from buying and selling charges when shares of their profiles had been purchased up to now 24 hours.

Customers make $580,000 from charges in 24 hours | Supply: DefiLlama

Good friend.tech has additionally acquired a flurry of customers. Its beta model was launched on Thursday, 10 August, registering over 30,000 transactions and 4,400 ETH ($8.1 million) in buying and selling quantity in its first 24 hours. On the time of writing, information from Dune Analytics exhibits that 16,657.20 ETH ($28.6 million) has been spent on shopping for profile shares.

Some Critics Don’t Suppose This Will Final

Whereas the sheer buying and selling quantity and income charges of Good friend.tech has proven the potential of the app, some critics have argued about its long-term viability. In line with a tweet by crypto on-chain sleuth YazanXBT, one thing doesn’t really feel proper with the app’s construction, with the best way pricing works displaying purple flags of pumps and dumps.

Let me inform you one factor.

One thing isn’t proper about @friendtech.

Creators making a living from a bunch chat that doesn’t even work when you’ll be able to’t even reply on to folks?

The best way pricing works is ridiculous and will be simply taken benefit of.

Pumps and dumps. pic.twitter.com/TJqcktEM6P

— Yazan (@YazanXBT) August 20, 2023

One other crypto analyst, Miles Deutscher, shared his opinion, saying that the app is way from polished.

Btw, I don’t view Good friend Tech as a “killer dApp”, it’s a cool idea – however removed from polished and I feel it’s doubtless we see higher iterations of social tech sooner or later.

Nevertheless, the pace through which it penetrated the market is intriguing, and exhibits how a good suggestion with a…

— Miles Deutscher (@milesdeutscher) August 20, 2023

The early success of Good friend.tech exhibits how shortly a crypto product can penetrate the market when there’s a powerful market match. Nevertheless, whereas the way forward for Good friend.tech and decentralized social media seems shiny, there are nonetheless obstacles to beat.

Good friend.tech will not be the primary decentralized social media app to make waves. BitClout, a blockchain-based social media platform, gained related traction in 2021. At its peak, BitClout’s token, $DESO, was listed on Coinbase and was buying and selling for greater than $180. Nevertheless, the worth of $DESO has since tanked, with the token now buying and selling at $8.95.