friend.tech is not a Social product, Social DeFi is the real name

Author: Encrypted Skanda, Source: Author Twitter @thecryptoskanda

It was too late to get on the boat and I felt like a baby boomer, but here I am.

I suspect those who claim @friendtech has no moat don't understand what its real offer is. People who doubted it so early NGMI.

Things don't work in a void, and a "SocialFi" return to basics may have begun.

Here's my two-cent thread.

Anyone who thinks Friend is a Social product is not doing a good job. On the first screen, it tells you that it is The marketplace of your friends. Obviously, this positioning is a DeFi product from the beginning to the end. The Twitter profile is also pretty straightforward: your social network is your net worth.

FUCKING、BRUTALLY、HONEST

This caught my eye, why? First of all, it really started the capitalization of influence.

Humans don't need Crypto to socialize. Whether it is IM, social networking with acquaintances, or social networking with strangers, which one cannot be well completed by existing Web2 solutions? You mean anti-censorship? Of course, humans need a censorship-resistant network like Nostr to leave their minds, just like primitive people portrayed in caves, and I am even willing to pay for it But you say high-frequency social?

The really useful part of Crypto for social networking lies in how to capitalize and value people's social behavior.

Last year, I spent a year repeatedly emphasizing on various occasions that no one cares about personal data sovereignty. The full set of personal data of 90% of the world's people is not as valuable as the eggs distributed by the local market. Do you talk to them about data sovereignty?

No pricing, no transaction, no hype = reskin Web2.

Be>Social

It's a pity that few people understood at that time.

The combination of Crypto and social networking, regardless of value proposition or crowd characteristics, the only feasible entry point is:

Capitalize the "influence" that can only generate cash flow in the past, form a trading market, and form effective transactions with an appropriate level of liquidity. This improves the efficiency of the distribution of this factor of production, while giving the "reputation system" the possibility of fair value, trading venues and leverage for the first time.

Social DeFi is its real name.

In fact, the gears of history have already begun to turn.

In the past, influence could only be realized through traffic intermediaries (advertising or delivery), but now he can become Harry Potter Obama Sonic 10inu with a market value of $162M to pollute your frontal lobe.

The meme currency price is the current fair pricing of the market for the sum of its own conceptual meme influence and the influence of the transmission chain.

And what the project does specifically is often not important.

Many "utility parties" may be filled with righteous indignation, so let me ask you, which one would you buy:

-$pepe frog brought by various whales

• Allow Solidity's $NEON on Solana

You know very well that the latter can be done by spending money on development, but at the same cost, it is probably impossible for these whales to speak for you

Looking back at @zepump's argument now, is it easy to understand?

Secondly, Friend defines a brand new distribution method + transaction method. There are two main aspects of "new":

• Created a target that does not require liquidity (high to low liquidity needs: Token>NFT>Share);

• Reduced target dissemination costs and shortened the path (from "token/NFT needs to find big V to spread to form transaction liquidity" to "big V itself is the target") and each round of bull market is composed of distribution + trading + market making mechanism Innovation is enabled.

Thirdly, it solves the issue of target empowerment, whether it is Token or NFT, and directly faces the problem of "influence" re-pricing after issuance, so it is often necessary to "find empowerment". Unlike Bitclout, the big V must join in person, so Share is responsible for the Token -Gating function to form a big V exclusive club. This is equivalent to transferring the top-down pressure of "how do I empower" from the original project side to the big V, turning it into a bottom-up "how do you want to empower".

As for the doubts about Friend, I see nothing more than these points:

• poor product

• Pure hype Ponzi has no sustainability

• Isn't this the trading of friends on Kaixin.com? No moat!

duh... First of all, the product depends on the audience and needs. The Crypto crowd must be asset-led, introduce influential CT V assets into the trading market, and then give long-term airdrop incentives. This basic problem has been solved in half, and users have enough patience to wait for new functions.

The Friend economic incentive model follows Blur, and this mechanism has been verified successfully (I will open a separate thread after Blur loses). The new functions in the future are nothing more than a bottom-up tool set, how to let the big V issue more assets and empower (make the exclusive club a knowledge planet) As for Ponzi, of course there is, and only by doing a good job of meme and ponzi can there be users. But you said that compared with various L1 and L2 online airdrops, how many users are purely speculative?

The positive externality of Friend is very obvious:

• No permission to "join" the high-net-worth circle (this is the closest distance between you and Milady Dog Village)

• Real gold quantified Share ranking = influence list = idol hit list (this is how big the industry DYOR)

MEV is obviously pre-designed, just to highlight the wealth effect announcement and form the meme of the asset + market concept. Low average unit price + no liquid market + tax = low killing rate model close to casino.

No moat is even more nonsense: allowing Zhu Su, Cobie, Hsaka, Charlotte and CT's top Alpha callers to open accounts in person, and take the lead in forming a trading market, and the meme around this concept is the biggest moat that is difficult to replicate. This is not copied by a PM from a big factory as a Web3 friend. Of course, it ultimately depends on the rhythm of the team. Whether the storytelling is new and fast enough is not a problem for Ponzi.