In the past, some very interesting innovations often appeared during the crypto bear market, and this bear market is no exception. Recently, a DApp called friend.tech has attracted market attention. In just a few days, the total transaction volume reached 30,000 ETH, and the protocol revenue reached 1.68 million US dollars a day. The money-making effect has quickly attracted market attention to this application, and the discussion volume is also continuing to set new highs.

Friend.tech hype logic

Many people classify friend.tech as a SocialFi project because this app focuses on social interaction. Users register and post relevant information, and then others can buy the user's stock shares and sell them to make a profit. The user can also make a profit from the corresponding stock shares, and the buyer can also exercise his or her rights, including conducting private chats.

From the content of this app, we can see that friend.tech has two main functions. The first is the speculation of stock shares. Due to the lack of hot spots in the market, some more interesting ways of playing can be favored by funds, and thus actively participate. At the same time, some people also reported that there are many robots buying and selling personal shares in the market. The money-making effect has led to an increase in the user group, which has triggered discussions.

The second is the fan economy. We simply believe that everyone can issue their own tokens and sell them to their fans, thus forming a fan economy model. This is especially useful for KOLs with many fans, especially in the current market conditions, where the monetization of personal influence has become the focus.

The arrival of the era of personal influence

From a core perspective, the money-making effect has promoted this application, and in fact, the fan economy and personal influence of users are the key points that make this application so popular. This is especially useful in the web2 era. Some web2 products have actually been quite popular before, and it has also stimulated the enthusiasm of all people to create and share, which is more in line with the spirit of free sharing on the Internet.

The Internet has gone through years of development from web1 to web3. The main core is the widespread dissemination and transmission of information, which has also continuously lowered the threshold for ordinary people to obtain knowledge. However, there are also some negative problems with online content. The core is the mixture of false information and real information, which makes it difficult for people to judge who to believe. Therefore, the concept of paid knowledge was born.

Simply put, it is a model in which some well-known figures in a certain field can get compensation by guiding or answering questions of ordinary users. For example, the previous paid Q&A is a typical case. However, this situation will reduce the attention of these well-known figures, so they generally adopt a strategy combining paid and free services, such as popularizing knowledge for the public, but providing consultation on specific cases. These are all ways of monetization.

After paid Q&A, fan economy has gradually become known to the public, such as live streaming with goods, which is simply a way for individuals to earn profits by promoting products with their influence. This model has also gradually expanded to web3, which is to make certain rights and interests of KOLs into tokens or stock shares, and then users can trade them or use them directly to obtain the information they want, and KOLs can also get corresponding rewards after providing knowledge.

Of course, a few weeks before friend.tech became popular, Twitter issued creator rewards to bloggers with high popularity. Some bloggers could receive thousands of dollars in rewards. This was considered by everyone to be a concrete manifestation of Musk's attraction to influential creators. This operation was also an important factor in directly promoting the arrival of the personal fan economy model, because the majority of bloggers would be motivated to share more valuable content and thus gain revenue. Twitter would also have more valuable information and attract attention, thereby gaining more advertising revenue. Distributing part of these advertising revenues to bloggers is also a positive incentive process.

In other words, the timing of friend.tech's emergence was very clever, and it fully seized the market trend. Coupled with the wealth-creating effect it brought and the airdrop expectations spread by the wool-party, this app became popular. Trading the personal shares of KOL celebrities is also a change in the process of crypto economy. Before this, for example, some well-known creators and artists could issue corresponding tokens, such as mirror articles or NFT works for trading, which also played a role in promoting the market for friend.tech.

Summarize

From the perspective of development trends, friend.tech is a meaningful innovation in the development of personal influence and fan economy, which is also an important development trend in the future. Of course, some people think that friend.tech has Ponzi elements, which is mainly due to hype. In essence, personal influence and monetization model also bring new highlights to the currency circle, and will also bring important reference significance to subsequent encryption projects including economic models.