Friend Tech (II): How it's going
Friend Tech is navigating choppy waters while facing public backlash
Welcome to The Metadata, the only NFT newsletter that you’ll need.
Today we cover:
Tuesday Data Dive: We take a look at what’s going on Friend Tech since our last data dive
One big reason why NFTs aren’t going up…
Taking a look into the crystal ball: What does the future hold for NFTs?
Bored Ape Yacht Club Floor Price. Source: OpenSea Pro
Even as trading volumes hit their lowest point, there was a decent 10 - 30% bounce in the major NFT collections over weekend. There doesn’t seem to be any particular reason for this. Most likely, they were just oversold. Dead cat bounce?
Bored Ape Yacht Club (26.5 ETH, +10% from last week)
DeGods (4.3 ETH, +16%)
Mutant Ape Yacht Club (5.1 ETH, +11%)
Milady (3.9 ETH, -12%)
Azuki (4.4 ETH, +29%)
Tuesday Data Dive: Friend Tech (II)
Two weeks have passed since we last dissected Friend Tech, and oh boy, has it been a whirlwind. Earlier today, the platform dropped a tweet that sent Crypto Twitter into a frenzy—only to delete it hours later:
Let’s see what’s going on with the platform since we last covered it:
The number of transactions peaked on 21 August, and has been on a downtrend since. The good news? It seems to have stabilized at 1,000 - 2,000 transactions/hour now. That’s pretty impressive and suggesting a reasonable level of user retention.
Racer, the founder, must be grinning ear to ear. Friend Tech takes a 5% cut in protocol fees for every buy/sell transaction. Quick math: that's a whopping $4.16 million in fees over just 20 days. Annualize that, and you're looking at $75 million in revenue!
The big question is: where are these protocol fees going? Presumably, they're funding team expenses, but the lack of transparency is raising eyebrows.
The number of active buyers and sellers has been dwindling, which isn't surprising given the falling transaction numbers. What's alarming is that the number of active buyers has now dipped below the number of active sellers—a reversal from the previous trend.
This week marked a shift from ETH inflows to outflows for Friend Tech (red bars). While the outflow is still modest (~250 ETH/$400K), it's a trend worth watching. Could this be the start of a more significant outflow? This could be a bellwether for the platform's future.
🤑 Why it matters:
Friend Tech is navigating choppy waters, facing public backlash and competition while trying to find its footing in the noisy crypto Twitter space.
Friend Tech's Achilles' heel appears to be its steep bonding curve, which limits the number of people in each private chat and caps its network effects.
We foresee that Friend Tech could eventually migrate to a v2 with more customisable features for each creator and a redesigned bonding curve. If this happens, some people will get rekt (those who bought keys at a high) but the blow could be softened with more tokens/points.
Our Favourite Tweets
🐥 One reason why our NFTs aren’t going up: no new inflows
To everyone wondering "why isn't number going up?", the answer is simple: There are no new inflows. And frankly, no reason (yet) for retail to jump back in.
This can change quickly, via a variety of catalysts like a $BTC ETF approval, the launch of a new killer app, or a broader… twitter.com/i/web/status/1…
— Miles Deutscher (@milesdeutscher)
Aug 26, 2023
🐥 SEC starts to go after NFTs 🤔
SEC charged the co "Impact Theory" with an unregistered securities offering because they sold ~$30m of NFTs
They have to:
1. Pay $6.1m fine
2. Refund all original NFT purchasers
3. Destroy all of their NFTs
Every company that has issued NFTs can be liable under this ruling
— Andrew "The Metaverse Guy" Steinwold (@AndrewSteinwold)
Aug 28, 2023
🐥 Animoca Brand’s CEO Yat Siu gives his TED talk on the metaverse
An incredible honor to have my .@TEDTalks published where I share an idea known by the #web3 community that true digital ownership will bring forward a better and more equitable future for all #metaverse#NFTs#TED#blockchain#ted2023#openmetaverse
— Yat Siu (@ysiu)
Aug 28, 2023
🐥 Xai is a gaming network on Arbitrum. It just launched its odyssey/quests today.
If you didn't know already, Xai will likely be one of the best gaming cooks on Arbitrum 🧠
— dingaling (@dingalingts)
Aug 28, 2023
🐥 Looking into the crystal ball on the NFT markets
Is the NFT market gasping its last breath?
Seems like it — glancing at the plummeting "blue-chip" NFT prices.
But hold your horses, let's see what our crystal ball tells us: 🧵👇
— Teng Yan 🥕 (@0xPrismatic)
Aug 29, 2023
🐥 Wreck League stats: pretty sobering
Wreck League stats:
▪️ Minted on 18 AUG
▪️ 40% of supply minted
▪️ Mint price was 0.15 ETH (150 APE)
▪️ Acquired 2300 users
Would you call it a success? 🤷♂️
Personally, Free mint > Paid mint.
Better FREE organic marketing, better user acquisition, better sentiment.
Why then?… htttwitter.com/i/web/status/1…t
— Loki The Bird 😈 (@lokithebird)
Aug 29, 2023
🐥 How 2 devs can take on a huge behemoth
2 cracked devs and a dream. 0% to >50% Market Share.
@te@tensor_hq now one of the fastest-growing NFT marketplaces — shipping products like there’s no tomorrow. 🤯
Here's the incredible story of @te@tensor_hqd what's sooooo cool about Tensor🧵 ⚛️⚡️ htt
— Ottr ☀️🦦 (@ottrfinance)
Aug 28, 2023
🐥 Creep Crew, a mysterious new project: “An Interdimensional Nightmare of Primordial Origins. Art, Culture, Exploration.”
Well this early call got me in touch with @CreepCrewNFT , and this is the info i can share with you all!
-777 Free supply
-Entertainment & Story-Telling IP funded & backed but i cant say
-The team has experience on Tv shows (Walking dead, American Horror Story, Bladerunners… https://twitter.com/i/web/status/1…/
— jasich.eth | collab manager (@thejasich)
Aug 28, 2023
🐥 Wanderers, an Animoca-backed project, opens sign ups for early access
Sign-up now for early access:
— Wanderers (@Wanderers)
Aug 23, 2023
🐥 A list of projects to watch for. Keep an eye on Fableborne especially.
My watchlist of upcoming projects for this week:
- @fableborne (Gaming project, VC, low supply)
- @PhibiNFT (Good team behind with experience in NFT project development)
- @3T_shootergame (Gaming project, low supply, free mint)
- @DigiFineArt (Art project,… twitter.com/i/web/status/1…
— VitoApH (@VitoApH)
Aug 28, 2023
New Projects & Upcoming Mints
🍿 Braindrop’s next AI art collection: “Mappings” by ira greenberg is minting on 30 August. 500 supply at 0.1 ETH each
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Disclaimer: This newsletter is for educational purposes only. None of this is financial or investment advice. It is not a solicitation to buy or sell any assets. Minting and buying NFTs is risky. Please do your own research.