Friend.tech, a social platform harnessing Web3 technology, has embarked on a transformative journey by offering its shares to its users, redefining the concept of ownership within its ecosystem.
The initiative aims to empower users, transitioning them from passive participants to active investors with a tangible stake in the platform’s success.
we’ve seen more fundraising announcements in the past week than we can count.
we don’t need to raise, so we thought, how about a fun raising announcement instead?
we’re taking the VCs’ points and giving them to you 🫵 pic.twitter.com/9ZwdZOHiNe
— friend.tech (@friendtech) March 22, 2024
This paradigm shift reflects a broader trend towards democratization in the digital realm, where users are given agency and financial involvement in the platforms they engage with.
Users of Friend.tech will now not only contribute content or consume services but also hold a vested interest in the company’s growth and development. This innovative move strengthens the bond between users and the platform, fostering a sense of community and shared ownership. The agreement with previous shareholders, including Paradigm, marks a significant milestone, enabling the direct transfer of ownership rights to platform users.
By facilitating this transfer, Friend.tech demonstrates a commitment to a user-centric model, where users actively shape the platform’s future and share in its prosperity. This user-centric approach challenges traditional venture capital financing models, signaling a shift towards greater inclusivity and user participation in technology entrepreneurship.
Friend.tech’s initiative opens up new avenues for user engagement and investment within the crypto industry, advocating for a more equitable and collaborative approach to platform governance.
Paradigm’s involvement underscores the growing trend towards decentralized and user-focused business models, aligning with the ethos of the Web3 movement.
Since its launch on August 10, 2023, Friend.tech has emerged as a prominent decentralized application (dApp) on the Base layer, attracting a significant user base and facilitating substantial trading volume.
The platform’s unique model, which converts user influence into tradable tokens known as “keys,” has garnered attention from cryptocurrency influencers, NBA players, and esports personalities, extending its appeal beyond the crypto community.
Friend.tech’s popularity was further fueled by the association with the Base network, a Layer 2 solution linked to Coinbase, and the involvement of Paradigm, a Coinbase-affiliated investment firm. However, the platform faced privacy concerns, particularly regarding potential user doxxing due to the link between Twitter profiles and Ethereum addresses.
Addressing these concerns, Friend.tech clarified that the leaked information originated from their public API, emphasizing the platform’s transparency while highlighting the importance of user caution in safeguarding personal information.
Despite its initial success, Friend.tech has seen a decline in popularity recently. Revenue, which peaked at over $1 million last year, has dwindled to under $15,000 over the past couple of months, according to a Dune dashboard.
