FRIEND Friend.tech

Overview of Friend.tech

Friend.tech is a blockchain-based social platform that allows users to buy and sell "shares" or "keys" associated with Twitter influencers. These keys grant access to private chatrooms with the Twitter account owner and other key holders.

Key Features

• Token-Gated Chats: Users can purchase keys to join exclusive chatrooms with popular Twitter personalities.
• Bonding Curve: The price of keys is determined by a mathematical formula that adjusts based on the number of keys bought or sold.
• Embedded Wallet: Users can onboard with a phone number, Google, or Apple account and receive a self-custodial wallet provisioned through Privy, allowing for seamless transactions without needing external wallets.
• Monetization: Users can earn a portion of transaction fees when their keys are bought or sold, incentivizing early adoption and content creation.

User Experience

• Invite-Only: The app is invite-only, with users receiving three invite codes upon joining, which helps create scarcity-driven virality.
• Open Infrastructure: The app is built on open infrastructure, allowing for open data and the creation of custom frontends and meta-games around the core experience.

Market Dynamics

• Market Activity: Friend.tech initially saw significant activity, topping OpenSea’s volume for a 24-hour span, but usage has since declined.
• Similar Platforms: Other platforms like Stars Arena, fan.tech, post.tech, and New Bitcoin City offer similar features with additional functionalities like tipping and fractional shares.

Pros of Friend.tech

• Monetization of Influence: Friend.tech allows creators to monetize their influence by selling "Keys" (shares) that give buyers access to exclusive content, private chats, or other perks associated with the account.
• Simplified Web3 Process: The platform streamlines Web3 processes, making it more user-friendly by bypassing repetitive authentication and transactional procedures.
• Unique Content Access: Users can purchase Keys to access exclusive content and privileges from creators, creating a new way for content monetization.
• Decentralized and Innovative: Built on Base, Friend.tech offers a decentralized social token-driven app that combines social networking with crypto trading, providing a novel approach to content monetization.

Cons of Friend.tech

• Potential for Downward Price Spiral: The platform's business model, based on key trading and price appreciation, could lead to a downward price spiral if engagement declines.
• User Turnover: The monetization model might encourage user turnover rather than stable, enduring relationships.
• Limited Accessibility: The app is only accessible via mobile devices and requires an invite code to register, which can limit its reach.
• Dependence on Demand: Earning substantial income on Friend.tech can be challenging without a sizable social following, as the platform monetizes influence.

Founders of Friend.tech

The founders of Friend.tech are pseudonymous developers known as Racer and Shrimp. Racer is particularly noted for creating the Tweet DAO, which was integrated with Twitter and provided access to accounts through the ownership of special NFTs. The duo initially developed a project called Stealcam, which was later renamed to Friend.tech in May 2023.

Investors in Friend.tech

• Paradigm: A venture capital firm that participated in Friend.tech's seed round funding.
• Notation Capital: Another venture capital firm that invested in Friend.tech's seed round, alongside Paradigm.

Halal Status of Friend.tech

No, the halal status of Friend.tech is not definitively established. The reason is that Islamic finance principles require clear ethical and moral guidelines for financial transactions, and the trading of tokens representing individuals' social influence, as seen in Friend.tech, may not align with these principles due to its speculative nature and potential for gambling-like activities. However, it is crucial to consult with Islamic finance experts for a definitive judgment.

Key Points:

• Speculative Nature: Friend.tech involves trading tokens based on the popularity of Twitter users, which can be seen as speculative.
• Gambling-like Activities: The platform's focus on trading and potential price fluctuations may resemble gambling, which is generally considered haram (forbidden) in Islamic finance.
• Ethical Considerations: Islamic finance emphasizes ethical and moral considerations in financial transactions, which may not be fully met by the nature of Friend.tech's operations.
• Need for Expert Judgment: A definitive judgment on the halal status of Friend.tech requires consultation with Islamic finance experts.