Friend.Tech's V2 Release: Can it Reignite the SocialFi Craze?

Friend.Tech is one of the most successful Dapps in the SocialFi space, boasting exceptional data in terms of user count, protocol revenue, and net deposit volume. However, following a period of FOMO sentiment, Friend.Tech's TVL plummeted from a peak of $50 million to less than $15 million. Previously, we provided an analysis of Friend.Tech's V1 version, which you can read here: https://www.wikibit.com/en/202308227164279567.html

In summary, the V1 version of Friend.Tech utilized a mechanism that allocated high commissions to Key Opinion Leaders (KOLs) to attract a large number of users leveraging their influence. However, as the price of Key community shares increased with the addition of more Keys, the phenomenon known as “latercomer's cost” escalated, causing anxiety among users and attracting indecisive users. Lastly, airdrop opportunities were utilized to reduce the perceived cost for users.

So, what changes does the V2 version bring？ And what is the utility of the platform token $FRIEND distributed alongside the V2 release？

New Feature: Clubs

Clubs is one of the major new features introduced in FT V2.

Anyone can create a new club. Clubs are defined as “group spaces” owned and managed by key holders; however, it is unclear how they will be used in the future.

How Clubs work:

• Key holders vote to elect the chairperson of the club.

• The chairperson manages the club and selects moderators.

• All club keys are traded using $FRIEND.

• Every club transaction incurs a 1.5% transaction fee, distributed to farmers and FT.

It's important to note that anyone can transfer club ownership and appoint others as chairpersons. This means users need to pay attention to whether the chairperson of the club is voluntarily nominated. Additionally, club names can be duplicated, so numbering should be noted.



Apart from the newly added Clubs feature, other functionalities have also undergone changes. The Wallet page now displays new elements, including “Farming” (LP), airdrop claims, and rewards.

Official Token $FRIEND

With the launch of the V2 version, users finally welcomed the long-awaited official token $FRIEND.

The launch of $FRIEND lacks relevant information, as the official details have not been disclosed. Currently, $FRIEND has two use cases: 1. $FRIEND serves as the anchor asset for purchasing Clubs. 2. It is used for adding liquidity to gain profits.

Users can only claim 10% of the airdropped $FRIEND tokens (provided they have followed at least 10 people) and need to join a club to claim the remaining 90%.



WikiBit's Review

In the V1 version, Friend.Tech amplified the interests of Key Opinion Leaders (KOLs), who utilized their influence to attract users by relying on them to continuously produce high-quality content for users who purchased their shares. In contrast, the V2 version introduced the Club feature, which leans towards a more community-centered approach.

With the launch of the V2 version, within just a few days, over 150,000 Clubs were created, and the active user count of Friend.Tech reached a recent peak. Upon examining the data, it is evident that the majority of these users are returning users. However, when comparing the number of created Clubs to the daily active users, it is noted that there are fewer than 20,000 active users. This discrepancy suggests that many returning users are likely driven by the need to claim airdrops, rather than genuine engagement, and the number of new users is significantly lacking.



The current data does not yet indicate a resurgence of interest in the SocialFi sector sparked by Friend.Tech. Future developments of the protocol will still need to be closely monitored.