Friend.tech's second wave shows how token-gated chatroom app is running

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Friend.tech's second wave shows how token-gated chatroom app is running

How much does it cost to run a social media app like friend.tech compared to a Uniswap?

Friends.Tech, an application that provides token-gated chat rooms, appears to be catching a second wind.

After an initial wave of hype was followed by a period of relatively low activity, friend.tech has almost reached $1 million in daily revenue, an all-time high, according to Token Terminal.

The revenue comes from a 5% fee charged on all trades of friend.tech keys. The hotel's hosts also take a 5% cut from trades.

Joe Coll, an angel investor and former venture capitalist, thinks the team behind friend.tech has made some crucial design choices that have driven the app's success.

Twitter's use of Twitter's social graph, its simplification of the crypto wallet experience, and the ability to deploy as a progressive web app, which functions like a mobile app but bypasses app stores, are key choices in infrastructure.

While still just a month old, friend.tech's second wave of momentum has made it difficult to dismiss as a flash in the pan - while many are no doubt drawn to its speculative aspects, there's arguably unique value to be found in token-gated chatrooms.

The app may favor the kinds of content not rewarded elsewhere - accounts like DtDcTr, relatively unknown on X, have attracted 70 keyholders, meaning that access to the chatroom costs nearly 0.52 ETH, or well over $800.

Another user, who goes by Gareth, shared how they were able to leverage friend.tech to amplify their reach on social media.

friend.tech has been attracting developers to create tooling for the platform - following the advent of tools to track top accounts, convert keys into fungible tokens, and others, Manifold, an investment firm, deployed a new smart contract that enables users to buy up their own keys immediately upon creating an account.

This is useful because traders have been running bots to snipe influencers' keys as soon as they join the platform. Users with large followings were unable to effectively betting on themselves early by buying their own keys.

Animoca Brands co-founder, Yat Siu, said Manifold's tool could be used to develop and launch a new cryptocurrency-based development and venture studio, Animoca Brands. So did pseudonymous influencer MEVCollector, who now holds 35 of their own keys.

To be sure, it's too early to call friend.tech the future of social media - the project is getting a boost from a points program that most assume will translate into a token airdrop.

Regardless of where it sits, friend.tech has achieved a enviable position among crypto apps, for the second time in less than a month, the app only lags Ethereum by fees, DeFi Llama said.