What is Social-Fi? The latest narrative in the world of digital currencies

Narrative trading is one of the popular ways to make a profit in the digital currency market. Traders who trade based on narratives, choose the latest events and hot topics of the market and go for projects related to the same field.

Thus, sometimes native asset trading of NFT and gaming projects become popular, and sometimes new second layer projects become popular. Today, the newest and hottest topic of the day in the blockchain and digital currency space is SocialFi. What is socialfay now and why has it attracted so much attention of users?

Read more: What is Narrative Trading in the Digital Currency Market?

SocialFi is a combination of social media and decentralized finance. According to the recent popularity and prosperity of social-fay protocols, we also with the help of something On the CoinMarketCap website, in this article we first take a look at these platforms and how they work. Then, we’ll examine what makes social media so popular and what the positive and negative views about these platforms are aimed at. In the end, we review some of the famous social-fay protocols and examine the future of this field.

If you also want to learn more about the latest version of the crypto market, stay with us until the end of this article about digital currency.

What is Social-Fi?

SocialFi is a combination of social media and decentralized finance. With the help of socialfay, people can earn money by being in social networks and interacting with others online. The basic and simple idea of ​​socialfay is that people can earn money by interacting online on social media, such as sending and sharing important messages or posting on social networks.

We can consider SocialFi as a part of Decentralized Social Networks such as Lens Protocol or Nostr. However, decentralized social networks do not emphasize monetization of online social interactions as much as SocialFi.

What is the reason for the popularity of social media?

One of the main factors of social-fay fame is Friend.tech application. FriendTech is a decentralized social network that allows people to earn tokens by interacting socially online and attracting followers. Users of this application acquire or trade assets called “Keys” or “Shares” to earn profit.

Read more: What is trade? All you need to know about trading

“Keys” in this application indicate access to certain user accounts that have great fame and popularity. The assets that are bought and sold in the FriendTech application under the name of “Key” are actually ragged tokens that can be traded independently and separately from the platform. In the list below, you can see some of the popular influencer accounts and tokens to buy and sell on FriendTech.

What are the reactions to social-fa?

The emergence of social-fay started a hot debate in this field, can this narrative be the beginning of a new chapter in the space of blockchain and digital currencies, or is it just a fleeting trend that will soon subside like Bitcoin Ordinals and BRC20 tokens?

Christ Burniske, a former managing director at asset management firm Ark Invest, tweeted that SocialFi could potentially trigger the market’s next bullish cycle.

However, not everyone agrees with Berniske. According to the account Defi Made Here, SocialFi is a new game that abusive users have started to steal the remaining liquidity of the market. This user believes that the social-fay trend cannot add any value to the crypto space.

Criticism of Friendtek application

On the other hand, Alex Wice, a famous crypto influencer and trader, has criticized FriendTech’s application model. Many compare FriendTech to the social network OnlyFans where people can get rewarded and earn money by sharing new content. However, Weiss says the two apps are not comparable.

Read more: 7 ways to earn money from digital currencies without trading

In his detailed tweet, Alex Weiss explains that FriendTech, unlike OnlyFans, is not just a content monetization app. According to Weiss, FriendTech is more like the story of non-homologous tokens; Because early buyers gain at the expense of subsequent buyers.

From the point of view of this famous trader, early buyers wait for the price to rise and then, by selling their assets to later buyers, they make a profit. Meanwhile, buyers who join the queue to buy FriendTech tokens late will suffer.

It is impossible to say exactly which side is right; Because both sides put forward court-friendly arguments. Social-Fi is an exciting new experimental trend that is likely to have an innovative impact. However, the recent narratives of the crypto space emerge and decline at a faster rate, and we still cannot be sure of the durability and stability of the social-fay narrative.

Popular protocols of Social-Fi

Now that we know what is the reason for the new social-fi hype, it is better to familiarize ourselves with some popular social-fi protocols.

Friend.tech

FriendTech allows users to buy and trade their social network credentials in the form of assets called “keys”. If the value of the token increases, the early purchase of the “key” of popular users can bring huge profits.

FriendTech has gained a lot of popularity especially among cryptocurrency Twitter influencers. Also, it is rumored that many of these influencers have invested in a token in the app, which is likely to be released later. It is interesting to know that FriendTech is also in the focus of attention of users who are not active in the space of digital currencies.

Read more: How to research the digital currency market?

Qrolli

Crowley is a decentralized social media protocol that gives users a dynamic and exchangeable digital identity. Users can monetize their content with tokenized posts and limit or charge for post collection.

Also, Crowley users can determine who is allowed to interact with their posts. Not to mention, there is also an on-chain referral system that allows users to earn money by attracting new followers or chatting online in decentralized spaces.

DeSo

The Deso app is a decentralized platform for long content, group chats and private on-chain content in a fully encrypted environment and many other decentralized applications.

Deso offers new ways to monetize content, such as points called Diamonds, NFTs, and valuable creator coins.

In addition, DSO provides its users with secure and fully encrypted private messages and group chats and private content on-chain.

Conclusion

In this article, we took a look at the new narrative of the digital currency space, i.e. social-fay, and examined the factors affecting its popularity and reputation. Then, we mentioned a number of positive and negative views about the formation of this new trend, and reviewed some popular social-fay protocols, including FriendTech, Crowley, and Desso.

Although SocialFi has great potential, it remains to be seen whether interest in the protocols will last. While the idea of ​​monetizing social media activity is certainly a new and attractive idea, the social-fi and decentralized social media space still faces significant challenges in the field of traditional, centralized social media platforms such as privacy, security, censorship, monetization, and data ownership. . Therefore, only time can tell if the social-fare fever is fleeting or if it could be a new phase in the evolution of the cryptocurrency space.

In the end, we must emphasize that the content of this article was written solely to familiarize the reader with the new narrative of social-fay in the space of digital currencies. Therefore, before making any investment or using any of the platforms introduced in this article, be sure to do the necessary and sufficient research yourself.