The Rise and Concerns of Friend Tech

Against the backdrop of an overall downturn in the cryptocurrency market, Friend Tech has unexpectedly become a hotspot. In just over a month, this emerging platform has experienced several ups and downs and is currently in a new wave of excitement.

Friend Tech officially launched on August 10, quickly attracting the attention of the Chinese community. Its novel model, potential airdrop opportunities, and the enthusiasm for new gameplay led to a trading volume of 130,000 on the first day and over 1,500 active accounts. However, this wave of enthusiasm soon faded. It wasn't until August 19, when it received seed round investment from the well-known investment firm Paradigm, that the platform experienced a second wave of excitement, but this too was short-lived.

After a half-month period of silence, Friend Tech has recently experienced a resurgence. The trading volume has doubled, and the total locked value (TVL) has soared to 31 million USD, with the number of independent accounts reaching 140,000. This round of growth seems to be more lasting and stable.

Why Friend Tech Stands Out?

Compared to other social finance ( SocialFi ) projects, Friend Tech shows stronger vitality, mainly due to the following factors:

1. High-quality user base: Well-known institutions, project founders, and influential bloggers from the English-speaking community have joined, boosting overall market attention. At the same time, the platform's incentive mechanism effectively curbs the proliferation of low-quality accounts.

2. Airdrop Expectations: Friend Tech promises to distribute 100 million points within 6 months, and the community generally believes this is closely related to future token airdrops. This expectation incentivizes users to hold and participate in the long term.

3. Strong background support: With top investment institutions like Paradigm backing it, along with potential connections to the Base chain and Coinbase, Friend Tech is provided with strong support.

4. Meeting the demand for "upward socializing": Friend Tech provides users with the opportunity to connect with high-level individuals, filling an important gap in the market.

Potential Risks

Despite the impressive performance of Friend Tech, there are still some risks worth noting:

1. High profits from robots: Currently, the profit share from robots is as high as one-fourth, which may raise the entry barrier for ordinary users and exacerbate declines during market corrections.

2. Steep price curve: The pricing mechanism of Friend Tech may lead to a significant price gap between early and late users, increasing the risk of market volatility.

3. The contradiction between product logic and profit model: The platform encourages users to hold long-term, but the earnings of the official and homeowners rely on frequent trading, which may affect long-term development.

Overall, Friend Tech has indeed captured a market gap and effectively avoided some pitfalls of traditional SocialFi projects. However, there are still some issues with its product logic. Currently, users providing substantial services on the platform have low earnings, while users skilled at creating hype are profiting significantly. If this situation is not changed, it may affect the long-term value of the platform.

For interested users, it is recommended to try while strictly controlling their positions, and to closely monitor the platform's future development and possible rule adjustments.