With the rise of digital technology, we’ve seen a surge in innovative platforms that combine finance and social interaction, and two such platforms have recently surpassed a significant milestone. Social finance apps Tomo and New Bitcoin City have reached over $1 million in Total Value Locked (TVL) each, according to data from DefiLlama.
Understanding the Concept of Social Finance Apps
These platforms echo the trend set by FriendTech, a pioneer in the realm of social finance. FriendTech introduced the concept of gated communities where users must purchase ‘keys’ to access group chats. The value of these keys increases each time one is bought, adding a unique financial twist to social interaction.
These social finance apps leverage the blend of financial transactions and social media in a unique way, creating a new space for digital interactions.
Tomo: A New Player with Innovative Ideas
Tomo, built on the Linea platform, brings new ideas to the table. Apart from offering direct messaging, a feature that distinguishes it from FriendTech, Tomo’s main innovation is its unique betting system. Users can speculate on the value of other users’ keys, predicting their worth should they join the platform. For instance, if Tesla CEO Elon Musk were to join, his keys are currently valued at 0.478 ETH ($743).
New Bitcoin City: A Different Approach
Running on the Bitcoin Layer 2 network NOS, New Bitcoin City differentiates itself by aiming to be a social layer. This approach allows users from other platforms like FriendTech to use their keys on its app. New Bitcoin City offers customization options, such as setting the fee that a group chat owner charges for the purchase of their keys (between 0-8%) and determining the number of keys required to access a group chat.
Users can also agree to buy each other’s keys for a 30-day period, a feature referred to as (3,3).
Currently, Tomo and New Bitcoin City are the only social finance apps with a TVL exceeding $1 million, aside from FriendTech, which still leads the pack with a staggering $43.7 million. Another platform, StarsArena, had surpassed this milestone before falling victim to a security breach.
As the world of finance continues to evolve, tools like these social finance apps are becoming increasingly important. For those interested in exploring this new frontier, platforms like cryptoview.io offer a comprehensive view of the cryptocurrency landscape.
