With a recently revamped Friend.Tech around the corner, SocialFi has once again become a big talking point in the crypto space.
The term SocialFi may bring back memories of BitClout and DeSothe crypto-native alternative to Twitter that had its moment in the sun in 2021. However, having failed to really gain traction, BitClout quickly faded away, overshadowed by DeFi, NFT and DAO, leading to many to say that SocialFi was still too early.
Can Friend.tech go mainstream? on without bank
friend.tech exploded this weekend; Is SocialFi a thing now?
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Yet some NFT and DAO projects currently serve as the best examples of successful SocialFi, creating DeFi-infused social networks that have had incredible staying power and, arguably, set the stage for this cycle's SocialFi memecoin.
As Friend.Tech v2 approaches, let's take a look at where SocialFi stands right now, what's missing in the industry, and if Friend.Tech's impending release can shake things up. 👇
Friend.Tech v1 and Memecoin Fever
Friend.Tech, launched in August 2023, allows users to buy and sell “keys” linked to Twitter accounts.
These keys function as access passes to private in-app chat rooms and exclusive content, effectively monetizing social interactions. Two weeks after its launch, the platform attracted more than 100,000 users and generated approximately $25 millionmarking a significant achievement in terms of user adoption and financial performance.
Although the monetization of social interactions is not entirely new, the implementation of Friend.Tech through a social token system presented a new iteration of SocialFi.
Friend.Tech keys not only symbolize access, but also leverage the natural human tendency to rally around charismatic personalities, effectively merging powerful forces of social coordination with economic incentives to create a uniquely powerful mechanism for engagement and of community cohesion.
Yet despite the impressive initial traction, Friend.Tech took a back seat last October, generating low activity and income until a recent resurgence before the launch of its v2.
Interestingly enough, during this lull in Friend.Tech activity, memecoins have taken the industry by storm, planting dogs, cats and hats in every timeline and title available.
These tokens have primarily thrived on Solana and, to a lesser extent, Base, where faster transaction speeds and lower costs allow everyone to participate – something the cost of Ethereum L1 may prohibit many from doing.
By enabling memeability – an inherently social act – memecoins replaced Friend.Tech's SocialFi with a sillier, arguably more fun type, but nonetheless still SocialFi. Memecoins have long been compared to NFT collections, I believe because they both create the same distinct social networks on our timelines. Dogs and hats, and dog hatspresent holders as a distinct population, much like how Milady's PFP and their crazy tweeting style identifies their holders as a distinct population.
Further parallels between these two asset classes can be seen in the more recent launches of L3 of DEGEN, followed by the announcement of Azuki and BAYC's L3s. Memecoins have even sparked initiatives quite similar to those seen during the last DAO cycle, WIF crowdfunding. for the Las Vegas sphere reminding ConstitutionDAO and its attempted crowdfunded auction.
The second coming of Friend.Tech
Even though SocialFi has taken different forms over the years, it has always been there.
SocialFi's fragmentation across different blockchains – with NFTs on Ethereum and memecoins on Solana – has hampered its rise as a mainstream trend. Although each blockchain has nurtured its own unique form of SocialFi, the lack of a unified platform has prevented a cohesive growth trajectory and led many to dissect them into separate trends rather than slices of SocialFi.
Friend.Tech can still change that.
Launched on 04/29, its v2 is packed with features that seek to combine the magic of NFT communities, DAOs, and memecoin social trends.
As a participant in the founder of Friend.Tech of the runner discussion group, crypto investor John Wang summarized many of the new features that v2 will bring to improve user engagement and personalization. Let's take a look at what's in store.
For groups
Room owners can customize their chat spaces aesthetically and functionally with options like polls, sweepstakes, and visual themes.
They can create Money clubs, allowing groups to manage shared treasuries and create tradable on-chain collectibles, memecoins, and large quantities of other media, generating additional revenue for the group. To support this, Friend.Tech will also have a Native DEXa hub for trading all these assets – arguably its biggest improvement.
V2 allows users to easily transmit and exchange via configurable link curves. This extends “exchangeable content” beyond user keys and monetizes the user attention they capture directly.
for example tickers (think #hashtagsbut $tradable), memecoins, stickers, and media-rich collectibles pic.twitter.com/p9ShawU4Ga
– John Wang (on Farcaster) (@j0hnwang) March 19, 2024
Chat rooms will become more dynamic overall, with the introduction of reactions and tagging, improved notification systems, pinned messages, sweepstakesand one Sponsorship Program– the latter fits perfectly with the way crypto grows and interacts with people.
These tools are designed to increase interaction within the platform and keep users active and invested in their communities.
For the platform
The platform will also be enhanced with a new discovery feed, improved keyword search functionality, personalized recommendations for key purchases and other user-specific suggestions.
Given the critical importance of security in crypto, v2 will also feature integration with cold wallets for enhanced security and 2-factor authentication. Combined with performance improvements such as faster loading speeds, this will expand the market that Friend.Tech can serve, potentially leading to increased adoption.
Overall, v2 updates provide an improved user experience And a comprehensive environment to unite all of SocialFi's successful iterations so far – NFTs, DAOs and memecoins – into a separate ecosystem.
Bringing all of these verticals under the Friend.Tech umbrella will show people how NFTs, DAOs, and memecoins are already exemplifying examples of SocialFi and potentially give SocialFi a dedicated environment that could cement its status as a trend here to stay.
Redefining SocialFi
SocialFi’s journey through its various manifestations – from Ethereum NFTs to Solana-based memecoins – demonstrates its already ubiquitous but fragmented presence across multiple blockchains.
Each iteration, while successful in its own right, has been limited by the separations of these environments, hindering a unified progression of SocialFi as a cohesive trend. But with the introduction of Friend.Tech v2, all that could change.
By providing a comprehensive platform, Friend.Tech v2 can potentially consolidate these dispersed assets into a cohesive and robust network. This unified environment could serve to firmly establish SocialFi as a dominant trend in our industry.
That being said, with a highly anticipated drop fast approaching, Friend.Tech will need to keep traction in its wake to achieve this goal. Considering the suite of upgrades that v2 will bring, I personally believe this will be the case.
No friend lives forever. But no friendship really dies. Hello to all the friends who are no longer with us, but who will always hold the keys to our hearts pic.twitter.com/A7eLfuwXTn
– friend.tech (@friendtech) April 7, 2024