With 10,644.8 ETH Revenue, Is FriendTech Really Defining DeFi or Just Defying Logic?

In a significant development, FriendTech has reported a staggering revenue of 10,644.8 ETH. This milestone is a testament to the platform’s robust performance and the potential of DeFi platforms.

However, it’s crucial to delve deeper. Despite the impressive revenue figures, FriendTech has faced criticism for its revenue model. The sustainability of such a model in the long run remains a question.

Moreover, FriendTech’s total value locked (TVL) has exceeded 30,000 ETH, indicating a strong user trust. Yet, the recent surge in revenue and trading activity comes amid a decline in the initial hype post-launch. This raises questions about the platform’s ability to maintain this growth trajectory. Here are some criticism faced by FriendTech:

1. Unsustainable Revenue Model: Critics have pointed out that the rate at which share prices have increased on FriendTech has been unsustainable12. They argue that the market making guarantees that the app makes the most money along with creators, causing the price to rise too quickly1.
2. Ponzi Scheme Allegations: Some critics have likened FriendTech’s operation to a Ponzi scheme2. They argue that when the hype cycle fades, people may rush to sell shares and, in turn, cause a mass panic2. The rapid increase in share prices could also speed their descent when the selling starts2.
3. Punishment for Using Copycat Apps: FriendTech has been criticized for its decision to punish users who opt to use forks or copycat versions of its tokenized social media platform3.
4. Data Leak Denial: FriendTech faced backlash when it denied a report claiming that personal data had been leaked by its API4.

It’s important to note that while FriendTech has achieved significant milestones, these criticisms highlight potential risks and challenges that the platform may face in the future. As always, it’s crucial to do your own research before making any investment decisions.

What do you think about FriendTech and the rise of such copy paste projects ?