Good friend.tech, a brand new decentralized social media (DeSo) app has quickly turn out to be one of many hottest new issues in crypto, with over 64,000 new customers and greater than 24,000 ETH in buying and selling quantity since its beta model launch of Aug. 11.
Whereas many crypto business heavyweights have praised the app for bringing hundreds of individuals on-chain and provoking sign-ups from even non-crypto figures — corresponding to gaming YouTuber Faze Banks and Russian protest group Pussy Riot — some have warned it is susceptible to burning out.
Constructed on Coinbase’s layer-2 community Base, good friend.tech is a platform that permits customers to buy shares of their buddies and influencers, which in flip grants them entry to a personal chat with that consumer.
Talking to Cointelegraph, crypto commentator Yazan identified various troubling components that led him to consider the app has between six and eight weeks earlier than each share costs and common exercise start to nosedive.
Let me inform you one factor.
One thing isn’t proper about @friendtech.
Creators earning profits from a bunch chat that doesn’t even work when you may’t even reply on to individuals?
The way in which pricing works is ridiculous and will be simply taken benefit of.
Pumps and dumps. pic.twitter.com/TJqcktEM6P
— Yazan (@YazanXBT) August 20, 2023
Yazan argued there was an unsustainable charge at which share costs have elevated.
“The fucked up market making that ensures that the app makes essentially the most cash together with creators — the value goes up too quick,” he stated.
“How come there’s 100 holders and the value is 1 ETH — 1 ETH to have the ability to see a personal chat?”
In accordance with pseudonymous software program engineer Cygaar in an Aug. 20 X thread, the value of somebody’s shares on good friend.tech is proportional to the sq. of the excellent provide. As the provision will increase, the value will increase exponentially.
It seems daunting, so let’s simplify it. Let’s assume that you just solely need to purchase/promote a single share (quantity = 1). That is often known as the spot value.
Utilizing our center college algebra abilities, we will develop out the perform and we’ll get:
value = provide^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 Good friend.tech.
“Completely not. I feel the platform will collapse as BitClout did. We’re in a bear market, and there is nothing to do. Everybody jumps on a possibility to earn money, however I feel the platform shall be accomplished throughout the subsequent weeks to months,” he wrote.
The bull case for good friend.tech
Others nonetheless, shared a much more constructive outlook on the brand new decentralized social media platform, praising it for its novel developments in UX for crypto functions — one thing that crypto app builders have long struggled to get right.
David Phelps, cofounder of Jokerace and EcoDAO, described Good friend.tech’s UX because the “best crypto has seen,” pointing to a few important components as to why the app was such a big breakthrough for crypto.
Firstly, the app doesn’t require customers to obtain by way of an app retailer account, which factors extra strongly to the concept of decentralization. Secondly, it bridges the funds to the app robotically, lowering the necessity for convoluted transactions.
Lastly, the app permits customers to deposit their ETH as soon as after which purchase and promote shares with out ever having to signal a transaction once more. The fixed have to confirm transactions by way of Metamask signatures has been a major criticism of many DApps within the crypto area.
Whatever the various predictions regarding the app’s future success or failure, there’s no denying that it has taken crypto by storm.
On Aug. 19, Friendtech introduced that it had obtained seed spherical funding from crypto enterprise capital agency Paradigm, sparking a wave of speculation over a future airdrop and potential token launch.
Earlier this 12 months, we partnered with @paradigm to construct instruments for brand spanking new on-line social interactions.
We’re grateful for the neighborhood’s heat reception and excited to proceed rising with you all pic.twitter.com/yINDMXkpuZ
— good friend.tech (@friendtech) August 18, 2023
In accordance with data from DefiLlama, Good friend.tech has generated $1.42 million in charges within the final 24 hours, and $4.2 million since its public launch.
On the time of publication, the whole income for the challenge stands at $1.88 million, and has witnessed over 724,000 transactions from greater than 64,500 distinctive merchants.