Representation Contract for "Capitalization" of friend.tech Accounts Trading on Aevo

The recent derivatives trading platform Aevo has listed a futures contract representing the "market capitalization" of accounts on friend.tech.

Representation Contract for "Capitalization" of friend.tech Accounts Trading on Aevo

Debuting yesterday (08/21), the FRIEND-PERP contract represents the "capitalization" index of accounts on the emerging social media app friend.tech, trading near $9 USD on Aevo.

Riding the wave of Web3 social media fervor, FRIEND-PERP transactions reached a volume of $236,000 USD on its first day, with the contract's value currently fluctuating around $7.4 USD.

Price Fluctuations of FRIEND-PERP on Aevo

Aevo is a derivatives trading platform focused on perpetual and options contracts, supported by Coinbase and investment firm Paradigm, as publicly disclosed. Paradigm is known to have invested in friend.tech, although the exact amount remains undisclosed.

Capitalizing on the SocialFi trend, Aevo announced it would award a share of Su Zhu, co-founder of the hedge fund Three Arrows Capital, which recently collapsed. This move is notable given Su Zhu's mixed reputation within the crypto community.

friend.tech is a Web3 social media app less than two weeks old, developed on Coinbase's layer-2 Base. It has garnered attention for its concept of trading shares of famous Twitter accounts and distributing airdrops. Demonstrating impressive allure, the platform earned over $1 million in fees on 08/20 alone, surpassing Uniswap and the entire Bitcoin network.

Amidst escalating hype, friend.tech faced accusations of leaking wallet addresses, Twitter usernames/IDs/avatars of over 101,000 users. However, friend.tech promptly clarified that this information had been publicly available previously and did not constitute a leak.

To mitigate unnecessary risks, users are advised to create a new wallet and use anonymous emails when registering on friend.tech.

In its latest development, the Web3 social media announced a renaming of "shares" to "keys," implying that holding a Key Opinion Leader's (KOL) share will unlock chat features with that individual. Nevertheless, speculations abound that this change was implemented to avoid the securities-like label on shares and potential legal complications.