FORESIGHTNEWS: friend.tech (FT) is not an interesting use case for SocialFi, but rather a Ponzi-like economy disguised as a 'social experiment,' driven by irresponsible behavior from KOLs in a market full of scams. The reasons for concern include:

1. The project founder has a history of initiating 'financial experiments' and then abandoning them. friend.tech's founder, @0xRacerAlt, is also the founder of TweetDAO and Stealcam, both of which claimed to be 'social experiments.' TweetDAO was created in 2022, allowing NFT holders to post content on the project's Twitter account, but the account was soon disabled. Stealcam, launched in March, proposed an auction mechanism for users to pay to view 'secret photos' of certain accounts, but the project's Twitter account is now disabled and website usage is virtually zero. All three projects share common features: they promise 'social experiments,' have pyramid-like economic structures, and were discontinued after a few months.

2. There is little incentive for creators to stay on the platform due to limited use cases and lack of economic incentives. The intrinsic value of friend.tech's use cases is minimal. Users are not buying 'shares' of any X account, nor are they entitled to any future monetization or income from the account. The interaction with X is merely a way to quickly attract users. What users purchase is the privilege of private chats with account owners, a feature that is surprisingly underutilized by FT users.

3. friend.tech's economic model is a pyramid scheme. The pricing curve for shares is based on a quadratic function, not supply and demand. The more people want to buy, the more the price increases exponentially. The problem is that the price decrease is also exponential, meaning that the moment the number of buyers no longer exceeds the number of sellers, the price faces the risk of collapse. An economy that relies on more users entering to sustain itself is called a Ponzi scheme.

4. Lack of privacy policy, access to your X account, and custody of your assets. The three risks associated with interacting with friend.tech indicate that the team is not overly concerned about the product's sustainability: the platform currently has no privacy policy, the application requests access to your X account, and you have no control over the shares you purchase, which are held on the platform.

5. The market is flooded with scams. As we are in a prolonged bear market, the market is full of scams and temptations. BALD, PEPE, and others are already commonplace. It is disheartening that less than 10,000 users are playing betting games in the market, with the rest placing their bets on Ponzis, trying to make money from different Ponzis every week. This is the only thing speculators can do.

In conclusion, as with all the hype and 'narratives' of the past few months, those who get in early will walk away with huge gains and then mock the ordinary users who lose everything. If you are an expert at entering the pyramid early and knowing when to exit, congratulations. If not, proceed with caution and do not invest too much.