Friend Or Foe? Friend.tech Social Media Platform Potentially Getting SEC Attention

Friend.tech, the pioneering decentralized social media platform developed by the creators of Stealcam, has taken the digital world by storm in its mere two weeks of existence. 

This innovative app, built on Coinbase’s Base scaling network for Ethereum, has introduced a revolutionary concept – enabling users to buy and sell “keys,” originally referred to as “shares,” of their preferred X (formerly Twitter) accounts. 

Interestingly, within this short span, the platform has accumulated an impressive $1.68 million in protocol fees. Notably, it has outperformed nearly all on-chain protocols globally over the past 24 hours, trailing only Ethereum and Lido, as reported by DefiLlama.

Friend.tech takes No. 2 spot on revenue and fees ranking. Source: Defillama.

Unlocking Friend.tech Possibilities Amid Regulatory Questions

Shareholders of Friend.tech are granted an intriguing advantage – the ability to privately message accounts in which they possess a stake. This feature holds potential significance, particularly in the event that securities regulators take notice. 

Mark Hiraide, a partner at Mitchell Silberberg & Knupp, emphasizes that the platform’s popularity and attention could draw regulatory scrutiny, similar to the case of Ripple. He suggests that substantial public attention could pressure regulatory bodies to intervene, highlighting the significance of market sentiment.

Hiraide further delves into the underlying dynamics, pointing out the nuanced expectation of profit associated with Friend.tech. While acknowledging the utility aspect, he underscores that the app’s reference to “shares” signifies more than just access. 

Bitcoin just a few dollars above the $26K level. Chart: TradingView.com

It signifies the enticing promise of capital appreciation within the shares themselves. As the user base expands and demand for shares escalates, their value is anticipated to rise in tandem, enhancing their investment appeal.

Unprecedented Surge And User Engagement

Friend.tech debuted with an invite-only beta launch on August 10, witnessing an immediate surge in demand that overwhelmed its server capacity on the very same day.

This rapid uptake was paralleled by an initial user count of around 10,000 buyers and sellers. However, the momentum escalated dramatically, with the platform presently boasting an impressive engagement of over 115,000 unique users, a fact corroborated by blockchain data aggregated by Dune.

Source: Dune Analytics

The exponential growth and innovative mechanics of Friend.tech have ignited interest and speculation within the cryptocurrency and tech spheres.

As the platform continues to captivate users and reshape the social media landscape, the implications for regulation, profit expectations, and user experiences remain topics of intense discussion. 

The speed at which Friend.tech has gained traction underscores its potential to reshape the digital realm while inviting careful examination from industry observers and regulators alike.

Featured image from BlockTrends