Author: ceteris, Source: Twitter @ceterisLianGuair1bus; Translation: Plain Language Blockchain
About a week ago, we released a report on FT (“Friend Tech”), covering things we like and things that might change. First, why did it become popular?
There are several reasons:
1) Twitter perspective: Every user needs to link their Twitter account to their http://friend.tech account during the registration process.
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2) Simple registration process (thanks to progressive web applications and embedded Privy wallet).
3) Coinbase’s Base initial buzz: Coinbase’s Base project may have caused a sensation in the early stages, attracting attention.
4) Bond curve dynamics: The operation of the bond curve may have sparked interest and heated discussions.
5) Airdrop expectations: During the beta testing period, users accumulated six months’ worth of airdrop reward points. When the application is officially released, announcing that these points will have special uses may spark users’ expectations.
When the report was released, related activities cooled down, but there are still reasons to be optimistic and believe that it will have a lasting impact. The reasons are as follows:
1. Technology Stack
Using progressive web applications (PWA) is a significant change. Although native applications have some trade-offs (as described below), they create a simple registration process and embed a multi-party computation (MPC) wallet with social login support from @privy_io, making it easy for newcomers in the non-crypto field to join.
2. Leveraging the Base Ecosystem
Friend Tech occupies an important position in the Base activities. Moreover, compared to ordinary applications seen on EVM Layer 2 today, it does have uniqueness. To survive on EVM Layer 2, a unique experience needs to be provided. Friend Tech has the potential to be such a unique experience.
3. Bond Curve
The bond curve (thanks to @dennis_qian) adds a lot of financialization and speculative elements to the product. Although there are concerns about sustainability, standardization allows people to freely enter, leave, and exit different rooms.
4. Drawbacks
The drawback lies in the MEV (Maximize Ethereum Miner Extractable Value) robots. During the peak period, the robots obtained all the keys of new creators in advance and then sold them shortly after. This has damaged the user experience and also resulted in a large number of failed transactions on Base.
The easiest way to visualize this situation is to look at the charts of Ansem (early adopter) and Faze Banks (joined during the peak). Once the game became known, market dynamics changed. This resulted in more extreme short-term trading volume and price fluctuations, with larger fluctuations compared to the previous week.
5. What is the future development?
In the past week, FT has experienced a second wave. Should we expect this trend to continue?
At the very least, we expect usage to continue, if for no other reason than the loyalty point system itself. People who have already registered are unlikely to uninstall the app, at least until the loyalty point reward activity ends.
But more importantly, people seem to be having fun and sharing things on FT that they wouldn’t share on Twitter.
A positive aspect of FT in the cryptocurrency field is that if it becomes a place for “alpha” and more intimate communication, it would be a favorable situation compared to the noise that one might encounter on larger platforms.
The biggest downside is that we see a lack of clear exit strategies. The lack of a clear exit strategy could hinder creators who do not want to commit to maintaining prices indefinitely and are concerned about potential public backlash from getting involved.
There are aspects, such as custom bond curves, fees, key limits, and allowing people to join without issuing shares, that could attract more people to participate, but this could undermine the simplicity of everything. We discuss these ideas in detail in the report.
Overall, we will continue to monitor Friend Tech in the coming months. There will likely be some adjustments during the approximately six-month loyalty point reward period.
However, to truly evaluate this product, we still need to see how it performs in the months following the airdrop.
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