Friend.tech Developers: How They’ve Achieved Massive $20 Million Revenue Since August
The development team behind Friend.tech has achieved impressive success since its launch in August, accumulating nearly $20 million in revenue. This makes Friend.tech the largest revenue-generating application on Base and the second-largest across the entire crypto space, according to data from DeFiLlama. With its current trajectory, the platform is projected to generate annualized revenue of $180 million.
Friend.tech operates as a platform that allows users to connect their Twitter accounts and facilitates the buying and selling of influencer profile tokens, known as “keys,” using ETH on the Coinbase-backed Layer 2 network, Base. These keys grant users privileged communication access to influencers, creating a unique social interaction experience.
The Success Behind Friend.tech
Friend.tech’s revenue comes primarily from user fees, which are derived from taxing approximately 10% of the trading volume of social tokens. To date, the platform has generated around $40 million in user fees. Half of these fees go to the project’s team as revenue, while the other half is distributed among users whose keys are traded.
Despite the emergence of similar apps trying to replicate Friend.tech’s success, the platform continues to dominate the SocialFi niche in terms of daily volume. However, there has been a decline in the number of unique users since late September.
On an individual level, the pseudonymous founder of Friend.tech, known as ‘0xRacer,’ has earned over $440,000 from the platform, according to on-chain data aggregated on Dune.
Challenges and Security Concerns
Unfortunately, Friend.tech has faced security challenges, with hackers targeting its users. Recently, a hacker stole approximately $385,000 worth of digital assets in 24 hours through SIM-swapping attacks on Friend.tech users. The scammer managed to pilfer 234 ETH by SIM-swapping four different Friend.tech users, as revealed by blockchain sleuth ZachXBT.
According to Manifold Trading, a company specializing in developing tools for the industry, $20 million out of Friend.tech’s total locked value (TVL) of $50 million is at risk due to sim-swaps. They estimate that if one-third of Friend.tech accounts are connected to phone numbers, that amounts to $20 million vulnerable to sim-swaps.
To mitigate this risk, Manifold Trading recommends that Friend.tech enhances its account security protocols by implementing two-factor authentication (2FA) and other necessary measures.
Friend.tech developers have achieved remarkable success, amassing nearly $20 million in revenue since their launch in August. Their platform revolutionizes influencer interaction and social token trading. However, challenges related to security, such as sim-swapping attacks, pose risks that need to be addressed promptly. Enhancing account security measures and staying vigilant will be key for Friend.tech’s continued growth and success.
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