FriendTech: The Rise of a New Social Token and Its Potential Risks

Against the backdrop of an overall downturn in the cryptocurrency market, the social Token product FriendTech has emerged as a standout, attracting the attention and participation of numerous users. In just over a month, the platform has gone through three development stages and is currently in a new wave of enthusiasm.

FriendTech officially launched on August 10, 2023. In the early days of its launch, the Chinese community spread the word widely, generating 130,000 transactions on the same day, with 1,000 active purchasing accounts. However, this wave of enthusiasm quickly subsided, and both transaction volume and activity saw a significant decline in the following days.

On August 19, FriendTech announced that it has received seed round investment from a well-known venture capital firm, and this news has reignited market enthusiasm. The number of active accounts purchased once surged to 4,000, with a single-day trading volume exceeding 500,000 transactions. The total locked value (TVL) skyrocketed from over 1 million dollars to 7 million dollars. However, this wave of excitement lasted only 3 days before it fell back again.

After a half-month period of silence, FriendTech has recently exploded again. Trading volume has doubled compared to before, TVL has surged to $31 million, and the number of independent accounts has reached 140,000.

FriendTech stands out in the social Token space mainly due to the following aspects:

1. High-quality user base. Founders of institutions and projects, as well as well-known bloggers in the English-speaking community, have successively joined and invested funds, driving overall market attention. Well-known bloggers in the Chinese-speaking community have also joined one after another, attracting more observers to participate. At the same time, FriendTech's incentive mechanism fundamentally eliminates low-quality accounts.

2. Airdrop Expectations. FriendTech plans to distribute points to users weekly over a period of 6 months, totaling 100 million points. The community generally expects that these points are closely related to the future Token airdrop, estimating that each point could be worth up to 2 dollars. This expectation greatly stimulates users' enthusiasm for participation.

3. Strong resource background. FriendTech has received support from top investment institutions and is built on the Base chain, backed by a major exchange, all of which provide strong guarantees for its development.

4. Meet the demand for "upward socializing." FriendTech provides users with a channel to connect with high-level individuals, offering opportunities for one-on-one consultations at relatively low prices. This fills a gap in the market.

However, participating in FriendTech also carries some potential risks:

1. The profitability of robots is too high. Currently, about 140 robots have earned a total of 2.2 million USD through FriendTech, accounting for one-quarter of the total profits, which has increased the participation threshold for ordinary users to some extent.

2. The price curve is steep. The price curve adopted by FriendTech may cause significant price differences among users, which can easily trigger speculative behavior and panic selling.

3. There is a contradiction between product logic and profit model. FriendTech encourages users to hold for the long term, but the profits for the official and homeowners depend on frequent trading, which may lead to a decline in service quality.

Overall, FriendTech has seized a market gap and gained significant attention. However, its product logic still has some issues, and how to balance long-term value creation with short-term speculative behavior will be a challenge it faces. For users interested in participating, it is recommended to try while strictly controlling their positions in order to seize market innovation opportunities.