How to make $5M on Friend.tech
Once in a while there is a new crypto project that takes the market by storm, this is the case of Friend.tech. After 11 days (August 10, 2023), it has reached 92K users, even though it is invite-only in private beta.
Even though the mobile application is very limited and feels like it was launched too soon, it is generating massive revenues from such an early project. It had 11,009 ETH in volume yesterday, and since the protocol is collecting 5% in fees for themselves, they have made nearly $1M in revenues in the last day, which is better than Uniswap revenues (one of the largest revenue generating protocols on the market).
While the risks are great since the team is anonymous, and for many other reasons. I still feel the project could become a major success as long as they clean the UI and UX and reach full launch. One of the reasons for this, is that social media is one of the most used categories of applications in the world. In fact, 1.3 billion users spend on average 5 hours a day on social media. The cost of developing such an application is massively cheaper than building a AAA game to attract the same amount of users.
Many will think the growth will soon collapse on itself, and while the economics may not be perfect, many users are generating insane returns. Greed is a powerful incentive, and the crypto industry is known to attract the most “degens” of users. Therefore, I believe that as long as a fraction of the users (traders and some content creators) make high enough profits, then they will continue to participate and grow the application until critical mass is reached. After all, this is exactly like the stock market, but instead of investing in companies, users invest in individuals. As well, unlike a publicly traded company that starts being traded at relatively their fair value, these content creators start being traded at the very bottom, so early investors can ride the growth the entire way. So, joining early will pay off the most as long as the project survive.
My experience so far
I was able to join the application yesterday, and in the first 24 hours I was able to generate 44% of return on my investment. This was only obtained by “investing” on content creators nearly randomly without much optimization.
So far, I found myself addicted and looking to capitalize on the trend. I only invested $100 since I found the risk of failure really high.
From my calculations, if 44% ROI per 24 hours last a month, even with a starting capital of only $100, I may end up with a total capital of $5.6M! This would be absolutely insane, but such is exponential growth. Obviously, there will be maturation at some point, but we are still in the beta phase.
Even my girlfriend, who’s been learning how to trade crypto recently, got hooked on FriendTech (Don’t be shy to go search for her profile).
Tips and Tricks
From what I can see, the UI/UX is so limited that only the top 50 creators are easy to find, however their share price is a lot higher, in some case even 3.3 ETH, and since the application doesn’t allow to invest fractional shares, this mean it cost about $5,500 to invest in the top creator. Since these 50 top creators are the easiest to find, chances are they will be receiving most of the investment, so the cheapest to invest into is 0.42 ETH ($700), so I can’t even invest in that one. Instead I chose to invest in very affordable ones, but ended up making more money on creators that were in the $50 and $25 range so far, they have grown the most out of my limited portfolio.
I tried to pick creators using the name search and ideally look at their twitter profile to pick those with as large following as possible and decent activity related to the crypto industry. The reason to pick crypto-friendly creators is that currently Friend.tech is only available on the Base chain. Which is the newly launched blockchain of Coinbase.
Protect yourself
I am in no way recommending betting the farm on this project. You should do your own research to decide if it’s worth the risk. However, even starting with a limited amount of capital can still lead to massive gains given the exponential growth currently observed. Only risk money you can afford to lose.
Conclusion
Be careful, if you choose to get on Friend.tech, make sure to only allocate capital you can afford to lose. Otherwise, if you need a referral code to join, feel free to reach out to me on twitter (x.com/Crypto_Rookies)
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