As the newly revamped friend.tech is set to launch, SocialFi is once again becoming a hot topic in the cryptocurrency realm.
The term SocialFi might evoke memories of BitClout and DeSo, crypto-native Twitter alternatives that had their moment in the spotlight in 2021. However, BitClout quickly lost its allure, overshadowed by DeFi, NFTs, and DAOs, with many considering SocialFi premature.
Yet, certain NFT projects and DAOs are currently prime examples of successful SocialFi, creating social networks integrated with DeFi that have shown remarkable resilience, arguably laying the groundwork for this round’s ‘Meme coin’ SocialFi.
With the imminent release of friend.tech V2, let’s examine the current state of SocialFi, what’s missing in this space, and whether the upcoming version of friend.tech can make an impact.
Friend.Tech V1 and the Meme Coin Craze
Launched in August 2023, friend.tech allowed users to buy and sell ‘Keys’ associated with Twitter accounts.
These Keys essentially served as passes to private in-app chat rooms and exclusive content, effectively monetizing social interactions. Within just two weeks of launch, the platform attracted over 100,000 users and generated about $25 million in revenue, marking significant milestones in user adoption and financial performance.
While monetizing social interactions is not a new concept, friend.tech introduced a new form of SocialFi through the implementation of a social token system.
The Keys in friend.tech were more than just passes; they capitalized on the natural human tendency to rally around charismatic figures, effectively marrying the powerful forces of social coordination with economic incentives, creating a unique and powerful mechanism for community engagement and cohesion.
Despite its impressive initial appeal, friend.tech experienced a slump by October last year, with low activity and revenue, until the recent revival ahead of the V2 release.
Interestingly, during friend.tech’s downtime, Meme coins swept the industry, planting dogs, cats, and hats (some features of Meme coins) across crypto Twitter and media headlines.
These tokens thrived mainly on Solana and had some success on Base, where faster transactions and lower costs allowed broader participation, unlike Ethereum L1’s high costs which could deter many.
Meme coins transformed friend.tech’s SocialFi into a sillier, more entertaining type, yet it remained SocialFi. Meme coins have long been compared to NFT collections, likely because they both create similar unique social networks on our timelines. Dogs and hats, and dogs wearing hats, all signify that the holders belong to a unique group, much like Milady PFPs and their frantic tweeting styles marked their holders as a distinct group.
Other similarities between these asset classes can be seen from the recent launches of DEGEN L3, and the subsequent announcements of Azuki and BAYC L3s. Meme coins have even sparked initiatives similar to those seen in the last cycle’s DAOs, with WIF’s crowdfunding for the Las Vegas Ball reminiscent of ConstitutionDAO and its auction fundraising attempts.
The Return of Friend.Tech
Though SocialFi has existed in various forms over the years, it has always been here.
The dispersion of SocialFi across different blockchains—NFTs on Ethereum, Meme coins on Solana—has hindered its appeal as a leading trend. While each blockchain has nurtured its unique form of SocialFi, the lack of a unified platform has hindered a coherent growth trajectory, causing many to dissect them as independent trends rather than parts of SocialFi.
Friend.tech still has a chance to change this.
Later this week, friend.tech V2 will launch, packed with features aimed at amalgamating NFT communities, DAOs, and Meme coin social trends.
As a participant in friend.tech founder Racer’s chat group, cryptocurrency investor John Wang outlined many new features coming with V2 to enhance user engagement and personalization. Let’s take an early look at what’s new.
For the Groups
Room owners can customize their chat spaces aesthetically and functionally through options like voting, raffles, and visual themes.
They can create Money Clubs, allowing groups to manage shared finances and mint tradeable on-chain collectibles, Meme coins, and a host of other media—thus generating additional revenue for the group. To support this, friend.tech will also have a native decentralized exchange, a hub for trading all these assets, which could be its biggest upgrade.
Chat rooms overall will become more dynamic, introducing reactions and tagging, enhanced notification systems, pinned messages, raffles, and referral programs, all in line with the evolution of cryptocurrency and how people interact.
These tools are designed to increase interactions within the platform and keep users active and engaged in their communities.
For the Platform
The platform itself will also see improvements, including new discovery features, enhanced keyword search capabilities, personalized recommendations for key purchases, and other user-specific suggestions.
Considering the criticality of security in cryptocurrency, V2 will also feature integration with cold wallets to enhance security and two-factor authentication. Combined with performance improvements like faster loading times, this will expand the market friend.tech can serve, potentially leading to increased adoption.
Overall, the updates in V2 offer a better user experience and a comprehensive environment, bringing together all successful SocialFi iterations (NFTs, DAOs, and Meme coins) into a unique ecosystem.
Bringing all these verticals under friend.tech will showcase how NFTs, DAOs, and memecoins have already replaced examples of SocialFi and could provide a dedicated environment for SocialFi, thus solidifying its position as a persistent trend.
Redefining SocialFi
SocialFi, through its various manifestations (from Ethereum NFTs to Solana-based Meme coins), has shown it is pervasive yet dispersed across multiple blockchains. Each iteration, while successful in its own right, has been limited by environmental separation, hindering the unified advancement of SocialFi as a coherent trend.
But with the launch of friend.tech V2, all this could change.
By providing a comprehensive platform, friend.tech V2 could consolidate these disparate assets into a unified and powerful network. This unified environment could firmly establish SocialFi as a dominant trend in our industry.
That said, with an eagerly anticipated airdrop coming up, friend.tech needs to maintain market attention to achieve this goal. Nonetheless, given the array of upgrades coming with V2, I personally believe it will succeed.
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