Friend.tech, an upcoming platform yet to see an official launch, is already generating buzz through community tokens. Twitter influencers are creating their social tokens with the shares available for community purchase.
The platform is by the creators of the Stealcam web app, with its latest offering tokens tied to Twitter. These tokens promise peer transfers and DEX pool liquidity with platforms such as Uniswap.
According to user updates on Twitter, the social token Cobie has already reached a price of almost 1 ETH, and Racer, with 64 holders, is close behind at 0.9 ETH. However, these details could not be independently verified by BeInCrypto at press time due to a glitch with the page.
Meanwhile, as information regarding the platform is scarce, users are encouraged to approach it cautiously. This is especially true, considering anyone can create a social token with malicious intentions.
A user who goes by the handle @blknoiz06 expressed enthusiasm about the trend, stating that the “social tokens meta [is] going to be hilarious during the bull run.” Despite this optimism, there’s uncertainty surrounding the project.
Influencer @CryptoKaleo noted in a tweet:
“Not sure how the airdrop mechanics for the token will work – but I am determined I will own more shares of more accounts than anyone else on the platform. Also, think there’s a chance it adds toward social boosting for your profile on the app.”
Despite the unclear token mechanics, Twitter has become abuzz with promotion around these social shares.
Cautionary Measures Amid the New Launch
DeFi Researcher Ignas has outlined precautions for potential Friend.tech token users. The influencer suggests using an anonymous email, stating that Friend.tech has no clear privacy policy.
Ignas also recommends funding your wallet from a fresh wallet. Meanwhile, the researcher also underlined that the app is experiencing difficulties under heavy load.
The application is one of the first to be deployed on Coinbase’s newly-launched Base layer-2 network.
As of Aug. 10, data highlighted by crypto journalist Colin Wu shows that the number of daily active users of the Base L2 network exceeded 100,000. Base users have already bridged more than $170 million in token value, according to Dune data:
Wu opined that the success of Base likely played a big role in the buzz around Friend.tech.
Research analyst Ollie delved into the specifics of Friend.tech. Ollie categorizes it under the ‘Socialfi’ section of blockchain applications, with features of buying and selling shares of people on the app.
The influencer cautioned, “These shares, much like any other digital asset is subject to volatility.”
Apart from that, the floor price could be a gamble. Ollie noted, “The price of the next share of a person’s share is determined based on a quadratic relationship with the current number of shares the person owns.”
We understand from the thread that users need to download the app on their phones by adding it to the home screen. Apparently, they must connect their email, Twitter and Bridge ETH to complete the sign-up.
Ollie also found that an icon labeled “Airdrop” has been spotted on the app, with qualifying users assessed based on points.
Friend.tech represents an intriguing development in the crypto space. However, users must exercise due diligence due to its experimental nature and limited information on the mechanics.
And since the tokens are essentially investing in people, the value of these tokens could be highly subjective and volatile. However, the development of community tokens and Twitter’s ad income-sharing mechanism has been a hot topic as of late. Reddit’s MOON and BRICK community tokens demonstrated the wealth creation potential in the industry.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.
Source: https://beincrypto.com/crypto-twitter-personalities-community-tokens-cautious/