The development team of friend.tech has earned nearly $20 million in revenue since its launch in August. Data from DeFiLlama shows that friend.tech is currently the top revenue-generating application on Base and the second-largest in the crypto space overall. The platform is projected to generate an annual revenue of $180 million.
So far, it has generated around $40 million in user fees, which come from taxing 10% of the trading volume of social tokens. Half of the fees go to the project’s team and the other half is distributed among users whose keys are traded. Friend.tech allows users to link their Twitter accounts and facilitates buying and selling influencer profile tokens known as “keys” using ETH on the Coinbase-backed Layer 2 network, Base.
The platform has been dominant in the SocialFi niche, but there has been a decrease in the number of unique users since late September. The pseudonymous founder of friend.tech, known as ‘0xRacer,’ has individually earned over $440,000 from the platform. However, there have been recent reports of hackers targeting friend.tech users through SIM-swapping attacks, resulting in approximately $385,000 worth of stolen digital assets in 24 hours.
Manifold Trading has warned that $20 million out of friend.tech’s total locked value of $50 million is at risk from sim-swaps. They recommend implementing two-factor authentication (2FA) to improve account security protocols.