Good friend.tech is among the hottest issues to occur within the crypto trade previously two months. Within the comparatively quick time of its existence, the decentralized social media app has been by means of ups and downs. From averaging buying and selling charges rivaling high cryptocurrencies like Bitcoin and Tron, to being labeled useless only a few weeks after launch, to making an amazing comeback to a brand new all-time excessive by way of Whole Worth Locked (TVL), it has undoubtedly been an eventful interval for Good friend.tech.
A lately launched report by AMLBot, a platform that helps customers verify crypto wallets for illicit funds, has dived into the ins and outs of Good friend.tech to discover whether or not the decentralized social media app is an funding alternative to think about.
The Constructive And Damaging Facets Of Good friend.Tech
Constructed on Coinbase’s Base scaling community for Ethereum, Good friend.tech’s social media app permits customers to commerce tokenized shares of different customers’ profiles utilizing ETH. In accordance with AMLBot’s report, the enterprise mannequin is price contemplating for funding. The app fees a ten% price each time a consumer buys “keys” (beforehand often known as shares) of one other consumer, with 5% going to the account whose shares have been purchased. On the time of writing, Good friend.tech has generated over $240.3 million in buying and selling charges.
Good friend.tech’s consumer base could be very various, as demonstrated by the assorted levels of wins and losses. AMLBot has proven that the common return on funding for customers is 127.44% and $405.5 in US {dollars}, with the highest customers incomes as a lot as $254,000. Nevertheless, some customers have additionally misplaced round $6.3 million, exhibiting the potential draw back.
What’s Subsequent For Good friend.tech?
Profitability on Good friend.tech typically is determined by how customers can guess on profile shares that may doubtlessly flip a revenue. Information has proven that the platform has really turned a revenue for almost all of its consumer base. Numerous wallets (27,800) have earned between $0-$100 on Good friend.tech, and 684 wallets are on the upper finish of $10,000 to $100,000 in earnings. Alternatively, 9 wallets have misplaced greater than $100,000.
Good friend.tech’s development has exceeded different decentralized social media platforms, and its present success reveals how shortly a crypto product can penetrate the market when there’s a powerful market match. The decentralized social media app has demonstrated its potential for positive aspects, however this in the end boils down to every consumer’s funding resolution. Different analysts have proven skepticism concerning its early success, with some evaluating the platform to a Ponzi scheme.
Whole crypto market cap at $1.03 trillion on the weekly chart: TradingView.com
If somebody can please fill me in, how is #friendTech not a transparent as day Ponzi? You purchase and if extra individuals purchase that group it goes up. The one solution to recognize is extra individuals coming in, with the inevitability of a load of bag holders. What am I lacking? pic.twitter.com/NyXvpo1pyT
— TheChartGuys (@ChartGuys) August 21, 2023
On the time of writing, Good friend.tech has managed to do properly by way of consumer base with 233k customers. In accordance with one of many core builders behind DeFiLlama, a hack into Good friend.tech could be extra devastating than the Balancer hack, as customers can lose funds by opening the app.
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