Is Friend.Tech a Pyramid Scheme? Uncovering the Similarities
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A product of Web3 developers known in X, formerly Twitter, as oxRacerAlt and Shrimppepe, this platform is creating buzz worldwide. Yet, as the user base grows, so do concerns about its business model. Many argue friend.tech looks strikingly similar to a pyramid scheme.
At the heart of friend.tech is a social token-based system. Users link their X accounts and purchase social tokens, known as shares or keys, representing their stake in another person’s social capital.
A 10% fee levied on every transaction gets split between the protocol and the user whose shares are being traded. The value of these shares fluctuates depending on the user’s popularity and engagement. Therefore offering a tantalizing opportunity to profit from social interactions.
However, it is worth dissecting the mechanics behind friend.tech to understand why its structure raises concerns about its legitimacy.
Content retrieved from: https://beincrypto.com/friend-tech-looks-like-pyramid-scheme/.
