Even though social finance ideas are not new, Tomo and other platforms are looking to diversify the services made popular by FriendTech.
The total value locked (TVL) in each of the smart contracts of social media-based finance protocols Tomo and New Bitcoin City is now over $1 million. That is according to current data from DefiLlama.
The protocols, which share a similar outlook to the FriendTech project, are simply decentralized social networks with a blend of traditional finance systems.
For what it’s worth, FriendTech popularized the idea of placing restrictions on communities. It did this in a way that encouraged users to pay for so-called keys before accessing group chats. Although the price of the keys increases every time a key is bought, overall, the model enables users to monetize their online presence.
Tomo, New Bitcoin City Bring Diversity to Social Financing
Even though social finance ideas are not new, Tomo and other platforms are looking to diversify the services made popular by FriendTech. For instance, Tomo has introduced the ability to message someone directly. But that is not all. Tomo also allows its users to bet on the value of people’s keys if they were to join the platform.
To put the above statement into perspective, if Tesla CEO Elon Musk were to join Tomo, users would start trading at 0.478 ETH ($743). That is because his keys are currently valued at the same price.
On the other hand, New Bitcoin City is also doing things a little differently. To a large extent, it is more interested in its social services, thus, allowing users from other protocols to use their keys on its platform.
New Bitcoin City also has some additional features that allow a group chat owner to set the fee for purchasing their keys. Furthermore, owners may also set the number of keys needed to access their group chat. And, finally, the app also lets users agree to buy each other’s keys for 30 days.
Notably, Tomo and New Bitcoin City are currently the only social finance platforms aside from FriendTech to have more than $1 million in TVL. As of publication, FriendTech still holds unrivaled domination of the space with $43.7 million in TVL. It might be worth noting that Avalanche-based StarsArena once had more than $1 million in TVL. But that was before it was recently hacked. Although StarsArena will reopen today, trading will not resume until a later date.
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