White Star Capital Digital Assets Fund - Newsletter #141
New Decentralised Social Media Platform, Friend.tech, Crosses 100,000 Users
New Decentralised Social Media Platform, Friend.tech, Crosses 100,000 Users
White Star Capital Digital Asset Fund - newsletter #141
Friend.tech, a decentralised social media app taking the crypto world by storm, has reached 100,000 users within 2 weeks of launching. Friend.tech creates tradable tokens corresponding to users’ profiles on X (formerly Twitter). In addition to chat and feed functions, owning someone’s token grants access to a private chat room with them, enabling social media content creators to monetise their audience.
Imagine a social media platform where your personal data is not a commodity, algorithms don’t dictate your feed, and you have complete say over your viewing and sharing preferences. Friend.tech enables users to curate their own content feeds, prioritising authenticity and privacy and meaning the end of algorithmically determined content dissemination.
Previous attempts to tokenise social media and token-gate communication include Bitclout, which struggled to gain traction, and Earn.com, founded in 2018 by Balaji Srinivasan (former CTO of Coinbase) which allowed users to cold email influenctial VCs and CEOs who could respond for a price. Coinbase acquired Earn.com in 2018 although later phased it out.
Friend.tech is the next generation of on-chain social networking, and is built on Coinbase’s new Layer 2 blockchain, Base. The platform enables users to tokenise their identity by buying and selling keys (formerly referred to as shares) of themselves to their followers. In essence, followers become stakeholders, and gives them direct communication access to the user and a personalised engagement feature on their preferred online platforms such as X and Telegram.
The concept behind Friend.Tech resembles the ownership principle of the stock market, where owning shares translates to having a stake in a particular company. While Friend.Tech might resemble other messaging platforms like WeChat or Telegram initially, the standout feature of this decentralised social media lies in the process of joining and leaving group chats.
As a user, you enter specific groups by paying a participation fee (in Ethereum), gaining a share of the group. When you exit the group, you can sell your shares to liquidate your investment. If share value rises, group members can sell their shares and exit, offering social benefits and potential financial gains.
This dynamic layer adds an element of social engagement intertwined with investment potential. Friend.Tech protocol also imposes a 5% transaction fee, with the owner profiting from the trade spread.
Since its invite-only beta version launched on August 11, 2023, Friend.Tech protocol has seen substantial activity. By August 19, 2023, the platform announced seed round funding from crypto venture capital firm Paradigm.
Additionally, according to Defi Llama data, Friend.tech has accumulated $6.97 million in fees since its beta launch. The platform has generated over $3.48 million through its social platform and, as per a Dune dashboard, facilitated more than one million transactions and engaged with over 110,000 unique traders (equivalent to Friend.Tech users) within the same timeframe. This surge in crypto social media interest has also drawn attention to the Base network.
To begin using the app, you need an invitation code and a connection to your X (formerly Twitter) account. Once these steps are completed, a minimum deposit of 0.01 Ethereum (ETH) into the Base network grants access to all Friend.tech features.
Amidst debates on sustainability, Friend.tech's decentralization, privacy emphasis, authenticity focus, and diverse content options position it as a unique and promising player in the social media domain, and provide a positive example of an on-chain consumer application.
🔦 White Star & Portfolio Spotlight
Safello signs agreement with Swedish authorities for cryptocurrency exchanges
The Alembic stack utilizes an Optimistic Chain, a Layer 2 solution that cuts gas costs while upholding Ethereum's security. Unlike conventional rollups, this approach stores transaction data off-chain through a Data Availability Committee, leading to significant fee reductions. This strategy allows for applications requiring high throughput and low fees, like gaming or social platforms, and Alembic's implementation, known as Muster, plays a pivotal role in their mission to onboard millions to web3.
Alembic stack and Layer 2 solutions for high throughput and low fees in Web3 applications
The Alembic stack utilizes an Optimistic Chain, a Layer 2 solution that cuts gas costs while upholding Ethereum's security. Unlike conventional rollups, this approach stores transaction data off-chain through a Data Availability Committee, leading to significant fee reductions. This strategy allows for applications requiring high throughput and low fees, like gaming or social platforms, and Alembic's implementation, known as Muster, plays a pivotal role in their mission to onboard millions to web3.
Oamo launches new mintlist on Galxe for anonymous data monetization
Oamo is launching a new mintlist on Galxe. This will enable the community to monetize its data anonymously. To gain access to the product pre-release on September 5th and receive exclusive rewards worth over $20k, interested parties must join the mintlist before August 31st.
Ledn Transfer for effortless fund transfers with Ledn Handles and email addresses
Utilize Ledn Transfer to effortlessly send funds to your dear ones through Ledn Handles or email addresses, ensuring a swift and uncomplicated process. Take the initiative to acquire your Ledn handle via the profile tab or homepage, and personally witness the seamless convenience it offers.
Thala's veTHL and esTHL benefits for token holders and liquidity providers
Thala Labs has launched veTHL, which offers benefits to THL holders and THL/MOD liquidity providers, including esTHL penalties, governance rights, and airdrops. Users can obtain veTHL by locking THL or THL-MOD tokens. Additionally, escrowed THL (esTHL) introduces a 30-day vesting period with decreasing penalties for conversion to THL, redirecting penalized THL to veTHL lockers and the Thala treasury.
ALEX integrates with multiple additional wallets
The ALEX cryptocurrency platform has seamlessly integrated with OKX web3 Wallet, Wallet Connect, Hiro Wallet, and Xverse. This integration allows users to participate in launching, trading, staking, and farming activities built on the foundation of Bitcoin. The platform aims to make Bitcoin-based decentralized finance accessible to a wider audience.
Social Escrow Platform ($PSP) launches staking on Optimism network
$PSP staking is now active on Optimism, introducing reduced gas fees and the chance to earn protocol fee shares and Gas Refunds within the diversified Social Escrow platform. $PSP's pioneering adoption of the Balancer 80/20 initiative across chains marks a significant multichain milestone following its Optimism staking integration, ensuring proportional rewards for staking and claiming on your preferred chains.
🏦 Enterprises & Institutions
Coinbase crypto exchange buys stake in USDC stablecoin-issuer Circle
Cryptocurrency exchange Coinbase has acquired a minority stake in Circle Internet Financial and dissolved their Centre Consortium partnership, which oversaw the issuance of the USD Coin (USDC) stablecoin. Circle will now be the exclusive issuer of USDC, streamlining governance and operational responsibilities while transitioning revenue distribution based on the amount of USDC held on individual platforms. Additionally, USDC is set to expand onto six additional blockchains, though the specific networks were not disclosed.
Mercedes-Benz unveils next NFT collection
Mercedes-Benz has revealed its upcoming NFT collection called "NXT Icons," featuring digital collectibles that explore the brand's design history across seven distinct eras. With approximately 2,700 collectibles per era, the collection totals 18,860 NFTs and offers early supporters "Mint Passes" to claim upcoming collectibles in the series, showcasing the brand's commitment to blending automotive heritage with digital innovation.
CoinDCX is cutting 12% of jobs as bear market, taxes take their toll
One of India’s most prominent cryptocurrency exchanges, CoinDCX, is reducing its workforce by around 12%, due to the extended bear market and the impact of India's tax policies on revenue. The country's stiff taxes on crypto, including a 30% tax on profits and a controversial 1% tax deducted at source (TDS) on transactions, have significantly affected trading volumes and revenue, leading to job cuts and efforts to steer the exchange towards profitable and sustainable growth.
Coinbase’s new Ethereum Layer-2 briefly surpasses Optimism and Arbitrum in daily transactions
Coinbase's new layer-2 scaling solution called Base briefly surpassed Optimism and Arbitrum in terms of daily transactions, reaching 617,330 transactions on August 13th. However, both Optimism and Arbitrum have since regained higher daily transaction counts, with Base's all-time high occurring on August 10th at 757,294 transactions.
⚖️ Government & Regulation
Kenyan Government forms committee to investigate Worldcoin crypto project
The Kenyan government has established a parliamentary committee to investigate the Worldcoin project. The committee's goal is to assess Worldcoin's activities, particularly its iris scanning and data collection practices, which have raised security concerns. This investigation follows the suspension of Worldcoin's operations by Kenyan authorities, police raids on Worldcoin facilities, and legal interventions in several countries, including France, Germany, the UK, and Kenya, amid controversies about the project's data collection and storage methods.
Hong Kong's ambitions in the crypto space: executives weigh in on Web3 and regulation
Hong Kong is aiming to become a prominent crypto hub, with the Securities and Futures Commission (SFC) planning to regulate the crypto space by issuing licenses for retail crypto exchanges. Hong Kong's proactive approach to supporting Web3 initiatives, including establishing a task force for Web3 development and granting licenses under the new crypto licensing regime, is seen as creating a favorable environment for crypto projects.
New Zealand parliamentary report advises against hasty crypto regulation
A report commissioned by the New Zealand Parliament has suggested a gradual and agile approach to cryptocurrency regulation, cautioning against excessive restrictions that could hinder business viability. The report recommended addressing issues as they arise, creating consistent guidance on digital asset treatment under existing laws, and proposing measures such as establishing a new class of investment for digital assets and forming a working group with government agencies to collaborate with the digital asset industry.
Colombian economists advise central bank to focus on stablecoin regulation over CBDCs
Current and former officials from the Central Bank of Colombia believe that a central bank digital currency (CBDC) would have a limited macroeconomic impact, according to a report. Instead, they emphasize the need for regulatory standards to protect against disruption by stablecoins and other cryptoassets, citing concerns about value volatility, privacy, and potential illicit activities. While Colombia believes a CBDC could help maintain central bank money as a primary currency and counter the rise of cryptocurrencies and stablecoins.
Germany ramps up AI investments amid global race for innovation
Germany aims to double its public funding for AI research to nearly one billion euros in the next two years, with plans to establish 150 university labs, expand data center capacity, and enhance access to crucial data for AI algorithm training. Despite intense competition from AI powerhouses like China and the US, Germany believes its emphasis on explainable, trustworthy, and transparent AI, coupled with Europe's privacy-focused regulatory framework, can attract AI professionals and businesses, as the nation strives to catch up and assert its technological prowess.
Central African Republic eyes tokenizing its natural resources
Despite the lukewarm response to its indigenous digital currency, Sango Coin, the Central African Republic (CAR) plans to tokenize its natural resources, aiming to attract businesses by offering streamlined online licenses and visas through blockchain technology. The CAR's new law allows for resource tokenization and positions the nation as a potential business hub, following a history of initiatives involving cryptocurrencies, including its short-lived acceptance of Bitcoin as legal tender.
💰 Funding & Exits
BitGo raises $100M after scrapping prime trust deal
BitGo has secured $100 million in funding with a valuation of $1.75 billion, following the cancellation of its acquisition deal with troubled competitor Prime Trust. This fundraising occurs about two months after BitGo's decision to abandon the Prime Trust acquisition due to significant financial and regulatory challenges.
ZetaChain secures $27 Million Funding to pioneer EVM-Compatible L1 blockchain interoperability
ZetaChain has secured a $27 million funding round from backers including Blockchain.com, Human Capital, and Jane Street Capital, driving its mission to establish an EVM-compatible L1 blockchain that connects all assets and data. The platform's smart contract layer aims to seamlessly integrate with various chains, including Bitcoin, offering an improved DeFi experience and enabling users to access decentralized services more easily.
Blockchain-powered AI project Jada raises $25M to enhance organizational decision-making
Jada, an AI project leveraging blockchain technology, has raised $25 million from LDA Capital to enhance decision-making and operational scalability for organizations. Operating within a blockchain environment, Jada's AI services distribute computations among network nodes, ensuring tamper-proof processing and efficient resource allocation.
Linera raises $6M in Seed Funding led by Borderless Capital for Web3 microchains
Web3 microchain startup Linera has secured $6 million in seed funding, adding to its total funds raised of $12 million. Borderless Capital led the funding round, joined by Laser Digital Ventures, DFG, Cadenza, and others, as Linera's innovative use of microchains aims to enhance web3 application scalability by reducing mempools and validator transactions.
Maple raises $5M in strategic funding to expand onchain capital services beyond DeFi
Onchain capital market Maple has raised $5 million in strategic funding, co-led by BlockTower and Tioga Capital. This marks Maple's third successful fundraise and propels its expansion beyond DeFi, with plans to extend lending services into traditional financial markets and target growth in APAC and LATAM regions for institutional-grade on-chain lending and borrowing solutions.
Ellipsis Labs raises $3.3M in Seed Funding to drive Solana Ecosystem development
In a $3.3 million seed funding round led by Electric Capital, Ellipsis Labs has secured contributions from Robot Ventures and Anagram, as well as notable angels like Anatoly Yakovenko, CEO of Solana Labs. This funding empowers Ellipsis Labs to further develop the Solana ecosystem and accelerate the creation of innovative DeFi protocols, including Phoenix, the first atomically settled limit orderbook on Solana, which has already facilitated over $250 million in spot volume trading without external incentives.
🚀 Project Launches & Updates
Microsoft and LeverFi launch AI-backed solution to overcome DeFi challenges
Microsoft and LeverFi have partnered to address challenges within the decentralized finance (DeFi) sector by launching Morpheus, an AI-backed portfolio management assistant. Morpheus aims to strengthen user confidence and mitigate risks in DeFi by utilizing two AI engines—one for monitoring protocols and one for user wallets—to detect security threats, manage risks, and provide insights for navigating the complex DeFi landscape.
Decentralized social media app Friend.tech is surging
Friend.tech, an on-chain social app launched on Coinbase's layer-2 network Base, has gained over 100,000 users within a month of its launch. The platform, which employs social tokens and allows the purchase of "shares" of social media profiles, has earned $1.42 million in fees in the past 24 hours, making it the third-most profitable crypto platform, behind Lido and Ethereum itself. The app enables users to create shares tied to their X (formerly Twitter) accounts, allowing others to purchase shares for access to group chats and messages, earning users "subject fees."
Google is testing a new AI life coach
Google is testing a new AI assistant that offers personalized life advice on a range of topics, including career decisions and relationship issues. The AI, developed in partnership with Scale AI, is being evaluated by over 100 experts to assess its ability to address complex personal questions, although Google's own AI safety specialists have raised concerns about relying too heavily on AI for important life decisions.
Solana (SOL)-based crypto project Helium (HNT) launches mobile phone plan
Decentralized wireless network project Helium Mobile has launched a mobile phone plan on the Solana blockchain, initially available to Miami residents. The plan offers unlimited talk, text, and data for $5 per month, significantly cheaper than traditional telecom carriers, utilizing its community-built Helium Mobile Network and partnering with T-Mobile for access to a nationwide 5G network.
🔥 Other Bits We're Excited About
Bitcoin analyst eyes ‘V-shape’ BTC price bounce as RSI hits 5-year low
Bitcoin's price remained stagnant for a third consecutive day, despite being heavily oversold, as the market saw intraday movements referred to as the "death chop." However, some analysts remained optimistic about a potential "V-shape recovery" due to oversold signals and noted similarities to previous bullish cycles.
Ethereum surges 11% after report SEC is set to approve Futures ETF
The price of Ether surged by around 11% to $1,700 after news broke that the U.S. Securities and Exchange Commission (SEC) is poised to allow the launch of the first exchange-traded funds (ETFs) based on Ether Futures. The SEC is reportedly considering not blocking applications from companies like ProShares, Volatility Shares, Bitwise, and Roundhill, among others, which have sought to launch Ether futures ETFs, and some approvals may come as early as October.