TechFlow news: The decentralized social media platform friend.tech gained significant attention over the weekend, generating over $1 million in revenue within 24 hours. Mark Hiraide, a partner at Mitchell Silberberg & Knupp, said this could attract the attention of the SEC.
Friend.tech charges two 5% fees for each transaction—one goes to friend.tech's treasury and the other to the account holder whose "shares" are being traded. In theory, users can profit by investing in accounts whose share value increases. Experts note that this model resembles stock markets. Just as shareholders in public companies may receive dividends, influencers on the platform can choose to share fees with buyers. Many have already offered such benefits to boost trading volume and prices. According to Hiraide, this adds potential utility to the application, but if these assets were listed on third-party exchanges, it would become even harder to distinguish them from traditional securities—making the platform more likely to draw scrutiny from securities regulators and increasing the risk of being classified as an unregistered securities offering.
