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 — resembling gaming YouTuber Faze Banks and Russian protest group Pussy Riot — some have warned it is vulnerable 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 associates and influencers, which in flip grants them entry to a personal chat with that consumer.
Chatting with Cointelegraph, crypto commentator Yazan identified various troubling components that led him to imagine the app has between six and eight weeks earlier than each share costs and basic exercise start to nosedive.
Let me let you know one factor.
One thing isn’t proper about @friendtech.
Creators getting cash from a bunch chat that doesn’t even work when you possibly can’t even reply on to folks?
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 price 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 mentioned.
“How come there’s 100 holders and the value is 1 ETH — 1 ETH to have the ability to see a personal chat?”
In keeping 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 to be daunting, so let’s simplify it. Let’s assume that you simply solely need to purchase/promote a single share (quantity = 1). That is also called the spot worth.
Utilizing our center college algebra expertise, we are able to broaden out the perform and we’ll get:
worth = 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 believe 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 make cash, however I believe the platform might be carried out inside the subsequent weeks to months,” he wrote.
The bull case for good friend.tech
Others nonetheless, shared a much more optimistic 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 lengthy struggled to get proper.
David Phelps, cofounder of Jokerace and EcoDAO, described Good friend.tech’s UX because the “biggest crypto has seen,” pointing to 3 important components as to why the app was such a major breakthrough for crypto.
Firstly, the app doesn’t require customers to obtain through an app retailer account, which factors extra strongly to the thought of decentralization. Secondly, it bridges the funds to the app mechanically, 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 must confirm transactions through Metamask signatures has been a serious criticism of many DApps within the crypto area.
Associated: Good friend.tech generates over $1M charges in 24h, surpassing Uniswap, Bitcoin networks
Whatever the diverse predictions in regards to 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 acquired seed spherical funding from crypto enterprise capital agency Paradigm, sparking a wave of hypothesis over a future airdrop and potential token launch.
Earlier this yr, 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 keeping with knowledge 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.
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