Web3 Platform Friend.tech Redefines Ownership, Distributes Stake Among Users

Friend.tech, a social platform utilizing Web3 technology, has introduced a new ownership framework by making its shares available to its users.

This initiative aims to empower users of the platform, who were once just participants, to become investors with a genuine stake in the company’s success.

This change signifies a wider evolution in investment dynamics towards democratization in the digital space.

Friend.tech Users Transition to Investors

Users of Friend.tech will now evolve from being merely content creators or consumers to actual investors in the platform.

This development enhances the connection between users and the company, cultivating a more robust sense of community.

This initiative was made feasible through an agreement with prior shareholders, including Paradigm, who have agreed to transfer the rights to sell tokens directly to the platform’s users.

By facilitating this transfer, Friend.tech makes a notable advancement towards a user-focused model, where users not only influence the platform’s future but also partake in its achievements.

The transition by Friend.tech opens new pathways for user involvement and investment within the cryptocurrency sector.

By granting users ownership stakes and authority over tokens, the company promotes a more inclusive and fair approach to technology entrepreneurship and governance.

This action challenges the conventional norms of venture capital funding and indicates a shift towards greater user engagement and investment.

Users are now enabled to directly influence the platform’s direction, nurturing a collaborative culture.

It is also noteworthy that Paradigm played a crucial role in this initiative.

Recognized for investing in groundbreaking technology ventures, the crypto VC consented to distribute shares among users, indicating a rise in more decentralized and user-centric business models.

Friend.tech’s Popularity Declines After Initial Success

Friend.tech, which launched on August 10, 2023, has emerged as one of the leading decentralized applications (dApps) on the Base layer, attracting over 200,000 users and generating a trading volume surpassing $230 million.

The platform uniquely transforms user influence into tradable tokens referred to as “keys,” enabling users to access a creator’s attention or influence.

This model has drawn not only cryptocurrency influencers but also NBA players and esports figures, expanding its appeal beyond the crypto domain.

A significant factor contributing to Friend.tech’s initial success was the excitement surrounding the Base network, a Layer 2 solution linked to Coinbase.

The involvement of Paradigm, an investment firm associated with Coinbase, further bolstered confidence in Friend.tech’s potential.

However, the platform has also encountered privacy issues, particularly concerning the risk of user doxxing due to the connection between Twitter profiles and Ethereum addresses.

Friend.tech has responded to these concerns by clarifying that the information considered leaked was actually sourced from their public API, demonstrating the platform’s transparent nature while also emphasizing the necessity for users to safeguard their personal information.

Nonetheless, Friend.tech has experienced a decline in popularity recently.

As per a Dune analytics dashboard, the project generated over $1 million in revenue at its peak last year.

However, its revenue has recently dropped to below $15,000 over the past few months.

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