Friend.tech, a newly launched decentralized social network, outperformed well-established players in the cryptocurrency landscape, including Uniswap and the Bitcoin network. Within 24 hours on August 19, it achieved a remarkable feat by generating over $1 million in transaction revenue.

The platform, which entered beta on August 11, allows users to tokenize their social circles by purchasing and selling “shares” of their connections. Additionally, it enables users who hold each other’s shares to exchange private messages. The protocol applies a 5% commission fee on transactions, with the account holder also receiving a portion of the generated commission.

The platform, built on Coinbase’s Layer-2 scaling solution (Base network), saw substantial activity in just one day. According to DefiLlama data, Friend.tech earned $1.12 million in commission revenue during that time, totaling $2.8 million since launch. Currently, the social platform records 724,000+ transactions and 64,500+ users, amassing a project revenue of $1.88 million.

Racer’s Role and Enthusiastic Discussions Surrounding Friend.tech Gains

Many believe that Racer, a developer known for NFT-based platforms like TweetDAO and Stealcam, is the mind behind this project. Racer aims to strengthen ties with crypto influencers, venture capitalists, and crypto industry leaders. Their goal involves earning royalties from transaction fees and focusing on Web3 initiatives through Friend.tech.

The surge of enthusiasm has sparked discussions on the revenue model, risks, and the platform’s future direction. Ignas, a decentralized finance researcher, highlighted that Friend.tech’s current model relies solely on trade-related fees, not increased shareholders. He also noted on Twitter that controversial figures might exploit FUD as a strategy for generating fees.

Lux Moreau, the originator of Talk.Markets, also emphasized that as shares change hands, their values experience significant hikes. This phenomenon could potentially incentivize the formation of smaller groups or sub-groups within the platform.

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