According to a report by K33 Research, the growing arena of Social Finance (SocialFi), despite its 'perverse incentives,' is catching the attention of crypto users. The report states that enthusiasts are eager for the next big development, eyeing SocialFi apps like Fantasy Top as a potentially promising opportunity.
Fantasy Top, a SocialFi game built on Ethereum layer-2 network Blast, offers buying and selling of virtual trading cards linked to crypto-associated accounts, further allowing users to participate in tournaments. The platform compensates user activities with rewards in Ethereum (ETH), native 'fan points,' a Blast token called GOLD, and additional trading card packs.
Despite the exciting potential, K33 DeFi Analyst David Zimmerman highlighted certain issues, expressing that the SocialFi space is prone to problems stemming from 'perverse incentives.' It was observed that influencers are motivated to promote the platform as 'heroes,' earning from trading volume fees, pack sales, and additionally through BLAST GOLD and 'FAN points.'
Nevertheless, the Blast network has managed to maintain relevance amid the launch of new layer-2 networks on Ethereum, holding onto significant TVL (Total Value Locked) in USD terms, even with ETH's price drop in April.
The report also notes criticism following recent Friend.tech's airdrop due to technical difficulties barring users from accessing and selling their tokens, while some large accounts managed to sell large amounts of the FRIEND token.
Amid these resonating platforms, Zimmerman pointed out the under-the-radar Sanko GameCorp, a streaming and gaming platform gaining traction among crypto natives.