Exploring Friend.tech: The Viral Crypto Social Media App

Friend.tech has rapidly gained notoriety within cryptocurrency circles, with users claiming significant profits. However, several red flags warrant attention.

Do you recall the deluge of crypto advertisements featuring Matt Damon, major sports league sponsorships, and caricatures of apes?

For those in the mainstream, cryptocurrency may appear to have faded into obscurity. Yet, the crypto community remains vibrant and active online.

During this prolonged bear market, investors, speculators, and even scammers have patiently awaited the next significant crypto project that could turn their fortunes around.

Many believe they have found that very project in Friend.tech, which has recently surged in popularity within the crypto community. A leaked database reveals that more than 101,000 users have registered since the invitation-only beta version of the app debuted on August 10.

Friend.tech's Early Earnings

Of course, profitability is a primary concern in the world of cryptocurrency, and Friend.tech is already generating substantial revenue. Historically, in a 24-hour cycle, Friend.tech has recorded transaction fees exceeding $1.04 million, resulting in over $709,000 in revenue. Since its launch, Friend.tech has over $25 million.

So, what exactly is Friend.tech?

In simple terms, Friend.tech is a mobile-based social media platform with a cryptocurrency component. The app is "the marketplace for your friends" on its website. Much like other beta social media platforms, such as BlueSky, Friend.tech mandates that users obtain an invitation code from existing users to sign up.

Friend.tech essentially provides each user with their own chat group similar to Telegram. To access a user's private group chat, others must purchase shares in that user's group. When they decide to exit the group chat, they can sell these shares to other users.

How Friend.tech Different From Anything Else?

In essence, Friend.tech streamlines the traditional process where Twitter influencers promoted their personal memecoins to followers by directly linking them to their identity and offering a premium feature – in this case, access to a private chat channel. It incorporates other common crypto project features, including a fee-sharing mechanism and airdrops to reward users.

Some crypto influencers have already claimed substantial earnings.

What are some concerns associated with Friend.tech?

This is a crypto project, so it inherently encourages highly volatile speculation. While some individuals will undoubtedly profit from it, like most crypto products, the primary beneficiaries are likely to be those within the tight-knit circles of crypto influencers.

Several other issues have been raised by critics:

The Friend.tech app necessitates linking users' Ethereum wallets to their X accounts (formerly Twitter). This raised two concerns. Firstly, users discovered that Friend.tech accounts gained certain permissions over their X accounts, such as the ability to post and retweet on their behalf. Secondly, when the Friend.tech database was leaked, it publicly associated an X account with the crypto wallet it registered with – information that users may not have intended to disclose.

Friend.tech is promoted as a decentralized social Web3 app, potentially leading to artificially inflated hype. As with many crypto projects, there may be behind-the-scenes coordination among influential figures in the space regarding when to buy and sell, providing them with a significant advantage over average users.

Is Friend.tech a scam?

Once again, it's crucial to remember that this is a crypto project. According to the perspective of many industry critics, the entire crypto space is rife with fraudulent schemes.

Scammers have already targeted Friend.tech, capitalizing on its rapid rise in popularity. Multiple phishing campaigns have emerged, attempting to deceive users into participating in a fake airdrop scheme that could potentially drain their crypto wallets.

Moreover, the identity of the individuals behind Friend.tech remains entirely anonymous. It's advisable to be aware of the individuals responsible for a project when considering substantial financial investments.

Friend.tech + Kosetto?

Some members of the Friend.tech team allegedly have connections to a project called Kosetto, which sold wearable NFT stickers. Kosetto garnered significant attention towards the end of 2022, encouraging users to promote their referral codes on social media to win NFTs and invest in their future plans. However, the project was suddenly abandoned in early 2023, leaving investors in the dark. Kosetto's social media accounts have remained dormant since January.

Paradigm Funding for Friend.tech

Notably, the Friend.tech team seems to have secured seed funding from the crypto venture capital firm Paradigm, potentially reassuring users who invest in the social media app.

It's worth mentioning that Paradigm has previously invested in FTX, a crypto exchange founded by Sam Bankman-Fried, who is currently in custody, awaiting trial on multiple charges, including wire fraud, securities fraud, and money laundering. The VC fund initially invested $278 million in FTX, only to inform investors later that it had become worthless.

That may be foreboding. Or not. Time will tell.