• Friend.tech is a decentralized social app that has gained over 100,000 users since launching on August 10th.
• The platform enables users to tokenize their profile by selling “shares” of themselves, which unlocks the function to private message said user.
• However, there have been concerns raised over its potential security status and whether the concept of “shares” can be deemed as a securities offering.
Friend.tech’s Popularity Wave
Decentralized social app friend.tech launched on August 10th and has already gained over 100,000 users with transaction count and inflows also skyrocketing according to Dune. Circle CEO Jeremy Allaire wondered whether the concept could be transposed to a business capacity, via a LinkedIn version of the app. The platform has attracted a wave of big names including NBA star Grayson Allen, and X influencers such as Frank DeGods and gainzy222 according to TechCrunch. At the time of writing, the number of cumulative transactions has reached 1.6 million with August 18 being a turning point in accelerating transactions according to Dune . Similarly, the platform has generated 1.777k ETH ($3.01 million USD) in protocol fees to date – making it the second biggest revenue-generating app over the last 24 hours across all chains per DeFiLlama .
The booming popularity of friend.tech has sparked conversations on whether it can build on its initial success points by providing direct contact with influential figures through its concept of “shares” which could potentially be deemed as a securities offering due to lack of clarity from US crypto industry authorities on what constitutes a security .
SEC Litigation History
The SEC’s history of crypto litigations raises questions about friend tech’s security status given that it offers tokens for sale which are used for messaging other users giving rise to suspicions that this might constitute an unregistered securities offering .
Potential Regulatory Implications
Industry analysts highlight that if friend tech does indeed constitute an unregistered securities offering then this would potentially have major implications for both its business model and its ability to continue operating legally within US jurisdiction . There is also uncertainty regarding how different jurisdictions might view such offerings under their own laws leading some analysts argue caution should be exercised when using or investing in these services until more regulatory clarity is established .
Despite its impressive start, concern have begun to mount over friend tech’s potential securities status due US crypto industry having no clear guidance on what constitutes a security and potential implications if found liable for running an unregistered securities offering under current regulations .