The SocialFi hype is hot in the crypto ecosystem. Though the financial side of these social projects is open to discussion, they are finding a place for themselves as they pump hopium and activity into the market. The birth of the hype was triggered by Friend Tech, the project that operates on Base chain.
Witnessing the demand on such social project, the other layers' developers built some copies of it on their own chains. As a result, now we have Friend Tech on steroids wherever we look in Crypto Twitter.
What do they offer to people to be actively used?
Compared to Friend Tech's complex reward mechanism, based on your rank and points collected, the new social projects are serving a specific monthly reward to the users.
Mutually, all platforms want you to do some things
Let's go through some examples:
This example comes from Post Tech, one of the most popular ones.
It is basically a reward system that gamifies earnings. In the first month, the offer is $100k for people.
Another example is Friend3.
The same system applies in this platform, too.
A certain amount of money to be distributed. Total airdrop points of people will be the criteria to decide on the amount of money per each wallet to receive at the end of Epoch. Engagement on platform and Twitter will bring you "social money" as they refer.
Note: This project was supported by opBNB developers. So, seeing the hype around, the project provides funds to those who develop a similar project to Friend Tech.
Volume is crucial. They do not want other projects to grab potential users.
All these projects are used by thousands of people for only 1 reason: Free Money
People want to farm airdrop points to get free crypto that is offered by the projects. Meanwhile, they are buying their own shares, engaging with others (tough inorganically), and spamming others.
The biggest problem is the lack of a real desire to spend on these project. People are aware of the fact that these projects will not exist in a year. Even if they survive, their tokens will be useless in time.
The sad reality may be something very well known for veteran crypto enthusiasts but new guys put their money in very expensive shares to make easiy gains if possible. Most of the time, the money flows from naive to veteran as they know how to trigger greedy people on such platforms.
These projects are not real SocialFi projects like we have in Hive ecosystem or Lens protocol by AAVE team.
These pump and dump or little hype projects are here to keep people and liquidity dynamic and give a purpose to crypto enthusiasts as the market is performing terribly.
Interestingly, the popularity of the projects affected the price of SocialFi projects' tokens. Steem gained 5% and HIVE gained 2.5% value in a day while BTC and others are red since the interest rates.
In Hive ecosystem, we need to inform people with our LeoFinance posts and grab the attention of SocialFi enthusiasts while the hype is vivid. These people deserve a real Web3 experience while learning and earning on Hive.
What do you think about the social projects?
Do you think they add value to crypto?
Share your thoughts below 👇
Hive On ✌🏼
