The FT craze has slowed down, where is the future of Web3 social?

1. When will this wave of friendtech come to an end?

Let's talk about the future development of web3 Social:

It is clear that there is a gradual trend of diminishing heat. Growth is slow, with TVL maintaining at 40+M, and some influencers have already started selling keys, leading to conflicts;

Market sentiment is gradually returning to calm. Previously, the sentiment was in an excessive FOMO state: indeed, faced with the continuously rising TVL, KOL's endorsements, overwhelming discussions on Twitter, and the constantly growing portfolio value, it was hard not to feel adrenaline rush and excitement;

However, after a few days of pullback, I believe many people have calmed down, especially since @machibigbrother's entry did not bring growth to TVL;

If this continues, FriendTech will inevitably continue to decline, as its model is not complex, and the empowerment of keys has already confirmed a few common modes through exploration. Without sustained growth, most retail investors will find it difficult to continue profiting and may rush to exit to avoid being cut.

So back to the question, when will this wave of heat come to an end? I believe it depends on the adjustments made by the officials. The upcoming feature updates, gameplay adjustments, and economic model of the project will play a crucial role in the long-term development of FriendTech;

After all, the current functionality of FT is too rudimentary and does not serve as a good knowledge payment product; homeowners cannot have endless tasks; most importantly, the big players who deposit hundreds of ETH are not purely consumers, and there will eventually be a day when liquidity is withdrawn. Therefore, the design of the token economic model is key to the project's future ability to stabilize TVL and avoid a chain reaction of collapses.

2. So is friendtech a revolutionary web3 social project?

FriendTech is undoubtedly an excellent social project. Its innovative gameplay, the combination of social and crypto, the resulting heat and discussion volume, and the high TVL and profitability level all indicate that FT has significant importance in the SocialFi space;

However, FT still has many shortcomings, or to put it another way, there is still huge room for improvement:

❶ First, of course, there are the high transaction fees and bots that many people complain about, which means that apart from the top homeowners, the project team and scientists take away most of the profits, which is also why most retail investors are unwilling to engage deeply.

❷ Lack of features. I won't criticize the UI here, but its current social activities are limited to text and image exchanges in Rooms, which is too restrictive. Homeowners have come up with various innovative empowerments for their keys, but they all need to rely on other platforms or tools to achieve this; even basic functions like lotteries and voting are absent in Rooms.

❸ In SocialFi, the cost of Fi is too heavy. A Ponzi scheme will eventually collapse; if the product cannot retain users, then when the economic model collapses, it will inevitably lead to an empty space.

Of course, this project has only been operating for three months, and its future development will depend on the team's actions.

3. How to view FT clones and other social projects?

Recently popular clones include Stars Arena and CipherRip, I think one very correct thing they have done is to add features similar to tweeting and tipping. This has diversified the activities of web3 social a bit. However, it is difficult to pose a significant threat to FT.

Previously, we often referred to the leading social projects as the social graph type CyberConnect and the underlying protocol type Lens Protocol, but now the market seems to favor tool-based + interesting gameplay.

In my ideal web3 social super application, it should have:

- A public domain traffic section similar to Twitter and Weibo

- Private groups, public groups, holding groups, and paid groups

- Voice and video live streaming sections

- An open-source platform and API interface that can connect with other Dapps, allowing free developers to create related mini-programs

Currently, DeBox is relatively aligned with this, but the Fi gameplay could be more innovative.

4. Finally, I would like to share three personal views on Web3 Social

❶ SocialFi and GameFi can both be seen as P2E, but their biggest difference is: In GameFi, you can only earn rewards within the game (NFTs and tokens), and as the token price drops and new users decrease, it can easily enter a death spiral; whereas in SocialFi, in addition to earning token rewards, you can also gain traffic and influence, which gives you the ability to monetize on other platforms and channels. So even if the social project you are playing does not make money, you still have the motivation to continue playing. Therefore, SocialFi will be more sustainable and have a higher ceiling than GameFi.

❷ Social projects must focus on the product and meet the needs of web3 users (lotteries, red envelopes, voting, governance, treasury, etc.), which is a process that requires long-term refinement. A good product can attract long-term, engaged users.

❸ Do not think about replacing Twitter or becoming a Twitter killer. This will only cause you to lose a channel to attract web2 users. Embrace Twitter, and use open-source platforms and API interfaces to drive traffic and create more gameplay.