Decentralized Social Platform Friend.Tech Upgrades with New Token Launch

Decentralized social network Friend.Tech has launched a new native token called POINTS for trade on its decentralized exchange on the Base network. The token currently trades at $3, coinciding with Friend.Tech's version 2 launch, which includes a "Clubs" feature, a 1.5% platform fee, and a requirement to join a Club and follow users for POINTS airdrop eligibility. Friend.Tech's native token FRIEND has declined to $2.5 since POINTS' launch.

Decentralized Social Network Friend.Tech Upgrades with New Token Launch

Introduction

Friend.Tech, a groundbreaking decentralized social network, has announced a significant upgrade with the introduction of a new native token, bolstering its decentralized exchange platform built on the Base network. This latest development signifies a major step towards enhancing the platform's ecosystem and addressing past challenges.

New Native Token: POINTS

According to DexScreener, the newly launched POINTS token has garnered significant traction, currently trading at $3 with a total circulating supply of 14.5 million. This token plays a pivotal role in the network's latest version 2 launch, which brings forth a host of new features and functionalities.

Prior to the official launch, rumors circulated regarding the potential introduction of a non-transferable POINTS token. These rumors gained traction after the leak of a smart contract related to Friend.Tech's version 2 release.

Clubs Feature and Tokenomics

In conjunction with the POINTS token, the V2 launch introduced a novel feature known as Clubs. This feature allows users to establish multiple clubs with customizable bonding curves.

"The new smart contract, Clubs, allows users to create multiple clubs with bonding curves among various options," explained @Cbb0fe, the X user who initially disclosed the token launch. "Furthermore, a platform fee of 1.5% is levied, along with a 1.5% staking contract. Club keys are acquired through the purchase of $POINT tokens."

The rollout of the POINTS token coincided with the launch of Friend.Tech's version 2, which also included the Clubs feature. Notably, a 1.5% fee will be imposed on every transaction, with the proceeds allocated to liquidity providers on the decentralized exchange (DEX).

To access their airdropped POINTS tokens, users are required to join at least one Club and follow a minimum of 10 users on the platform. Subsequent to the introduction of POINTS, Friend.Tech's original native token, FRIEND, has experienced a decline in value, dropping from a previous high of $169 to $2.5.

Recent Challenges and V2 Relaunch

This V2 launch marks a significant turning point for Friend.Tech, a platform that faced a setback in recent months. Following its launch in August 2023, the protocol quickly gained traction, generating protocol fees of $1.42 million within 24 hours. DefiLlama data indicated that this achievement placed Friend.Tech above prominent protocols such as Tron and Uniswap.

Further solidifying its position as an emerging force in the crypto space, the platform reportedly amassed over 100,000 users within a two-week period, generating an estimated $25 million in revenue. Friend.Tech's unique value proposition revolves around its innovative approach of transforming social connections into tradable assets. Through the purchase of shares in other users' profiles, users can effectively tokenize their social networks.

However, within a month of its official launch, the platform experienced a substantial drop in transactions. Daily fees plummeted by approximately 87% on August 26, settling at $225,000. Trading volume on the platform also decreased significantly, falling from $16.9 million to $953,000. Transactions on Friend. tech nosedived by over 90% from their peak on August 21.

The bearish outlook adversely affected the decentralized social network, prompting Polygon Labs' former president, Ryan Wyatt, to characterize Friend.Tech as a Ponzi scheme incapable of retaining users.

"In its current form, you're basically looking at an unintended Ponzi w/ first in/first out because there isn't any product feature depth to create stickiness or retention. As a result, creators will churn quickly, and users will be left exiting creators," Wyatt asserted. "A lot of work needs to be done."

This relaunch is widely regarded as a significant step towards countering the negative narrative surrounding Friend.Tech. By introducing new features and tokenomics, the platform aims to revitalize its user base and restore confidence in its ecosystem.