Blockchain Mata

This Friday, on the 10th of November, 🎙️Join us as we speculate on 'The Future Developments in Web3, Blockchain Technology, and Decentralization' with @defiprince_ & @netrovertHQ ------ Make sure to set a reminder now!! 👇 xitter.cf/i/spaces/1MnxnMVYRwVJO

Friend Tech has lost $9 million from its all-time high TVL of $52 million, this happened in the space of a week. Will it be able to sustain its trend, especially with its daily transactions and revenue slowing down?🙇🏾‍♂️🙇🏾‍♂️🙇🏾‍♂️ Well here are seven economic moats that have made Friend Tech established in the crypto and web3 space.📊 ✅Friend tech had a first-mover advantage and started a trend that other social Fi networks are emulating. These forks include Friendzy, Polyfriend Tech, PostTech, Fan Tech, StarsArena, etc., some of which are on different blockchains. ✅Friend tech, as a crypto product, offers a simple onboarding method where anyone with an X account can sign up, and a wallet is automatically assigned to them. This has led non-crypto natives to join the trend, including individuals like Grayson Allen (NBA player) and Garry Tan (Partner at Y-Combinator). ✅As a SocialFi platform, being the first of its kind, it has garnered a lot of attention, users, and content. This would make it difficult for people to leave the platform, as new platforms would need more than just improved user experience to compete. Users have already built their identities on Friend Tech, making it difficult to persuade them to switch. ✅Transaction costs on the Base are low, which has facilitated Friend Tech's adoption among users. The cost of socialization should not be expensive; otherwise, it defeats its purpose. Regardless the bonding curve associated with keys makes a lot of sense since access to any person should come at a cost proportional to the demand. This creates more value within the system. ✅Friend Tech currently has no technical or economic exploits, unlike its fork StarsArena, which was recently exploited. A good reputation is crucial in web3 to maintain users' trust and a strong presence in the market. ✅Friend Tech has attracted a large number of creators, including prominent individuals like Cobie, Zhusu etc. While this might not be easy to replicate, the platform had 82,000 new users and 193,000 active users this week. ✅Friend Tech received seed funding from Paradigm in the last quarter, although the funding amount is undisclosed. This funding has helped solidify the team and its reputation. Considering all these factors, it's safe to say that Friend Tech has developed a competitive edge in the market and is here to stay. It has shown a lot of promise, consistently outperforming NFT marketplaces since its launch.🔥 On the downside. This analysis wouldn't be complete without outlining the downside🤓 ❌Friend Tech has a group chat with UX issues where people who don't have their keys can't see your messages in a group chat. Even when everyone in the group has a common key. This leads to confusion, requiring everybody in a group to hold every participant's key. For every key you hold, you get to see the owner's messages, this is the only way the conversation would make sense in a group. Regardless this may increase inter-key purchases among common key holders. ❌Crypto and web3 products struggle to retain users when compared to web2 products, primarily due to the ease of forking and aggregating open code and data in web3, as well as the low cost of user acquisition. You can draw comparisons with Opensea vs. Blur in this context. ❌Switching costs are a concern because Friend Tech is built on Base, a layer 2 on Ethereum, making it solely reliant on the Base. If anything goes wrong with Base, the cost and time required to switch would be a limitation. For a more in-depth article on Friend Tech's performance and its role in revolutionizing the SocialFi landscape, I recommend you check out my blog post.👇 blog.blocverse.com/exploring… And also for more in-depth analysis check out Tom's post👇 xitter.cf/tomwanhh/status/170983… For prominent accounts on Friendtech and on-chain analysis, I suggest you give them a follow😇 @0xRacerAlt @TrustlessState @tomwanhh @0xCaptainLevi @JackNiewold @DefiIgnas @elindinga @ElukeV