Friend.tech, a decentralized social media platform on which users can buy and sell “shares” of personal accounts on X, formerly Twitter, attracted numerous attentions in recent weeks.
Friend.tech transactions come with two 5% fees. One goes to Friend.tech’s treasury and one goes to the account holder for whom the shares are being traded. Users can also, in theory, turn a profit by investing in accounts whose share value increases. The model appears similar to the stock market, securities experts say.
Mark Hiraide, a partner at Mitchell Silberberg & Knupp, said:
“Clearly there’s some utility there, but the fact that they call these ‘shares’ is an indication that these are not just admission tickets,” Hiraide said. “What they are selling essentially is the prospect of capital appreciation in the shares; as more people join the platform, as more people buy shares to access popular personalities, the value of the shares will increase.”
The apparent popularity of Friend.tech and the attention it has drawn alone could be enough to make the SEC step in, Hiraide said.
In the latest move, Friend.tech renamed Shares to Keys, citing the original name was a placeholder during development and Keys better illustrates their purpose as in-app items used to unlock your friends' chatrooms.
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