The Rise of Automated Profits on Friend.tech
Maximal Extractable Value (MEV) bots operating on Friend.tech, a decentralized social media platform, have reportedly generated over $2 million in profits within just two weeks. According to data from Dune Analytics, collated by Tom Wan, a research analyst at 21Co, 121 automated bots managed to obtain over 21,800 Keys. The surge in bot activity was particularly noticeable on August 21, when transaction numbers spiked to 500,000.
The Strategy Behind the Numbers
These bots employ a strategy of procuring recently registered profiles at a minimal initial expense and then selling them at a premium. One MEV bot, identified as “0xcc218bbd21e14944fcc121d161c9b9ae71b9cc85,” stood out for its exceptional performance, accruing nearly 260 ETH—equating to approximately $600,000—by acquiring 96 profiles. Supplementary data reveals that the cumulative volume on Friend.tech has reached 45,495.9 ETH, with a valuation exceeding $70 million, spanning 2.05 million transactions since its inception.
A Double-Edged Sword: The Pros and Cons
From my point of view, the rise of MEV bots on Friend.tech is a testament to the platform’s growing influence and profitability in the decentralized social media landscape. It also highlights the potential for automated systems to generate significant revenue in a short period. However, the downside is evident: the instances of failed transactions reached an unparalleled peak at 308,860, overshadowing the count of successful transactions. This raises questions about the platform’s scalability and reliability, as well as ethical concerns about the use of bots to manipulate market dynamics.
Key Takeaways
- MEV bots on Friend.tech have generated over $2 million in profits within two weeks.
- The bots employ a strategy of buying low and selling high, particularly with newly registered profiles.
- While the bots contribute to the platform’s revenue, their activity also raises concerns about scalability and ethics.
In conclusion, Friend.tech is undoubtedly a rising star in the decentralized social media space, but it must address the challenges posed by the increasing bot activity to maintain its credibility and user trust. As I see it, the platform is at a crossroads: it can either capitalize on this automated revenue stream or risk undermining its own success by ignoring the potential pitfalls.
