The decentralized social media platform Friend.tech was popular over the weekend, generating over $1 million in revenue within 24 hours. Mitchell Silberberg & Knupp partner Mark Hiraide stated that this could attract the attention of the SEC.

Friend.tech transactions require two 5% fees. One goes into Friend.tech's treasury and the other goes to the account holder of the stock transaction. In theory, users can also profit by investing in accounts that increase in stock value. Experts say that this model looks similar to the stock market, and just as shareholders of listed companies can receive dividends, influential people can choose to share fees with buyers.

Many have already provided this benefit to increase trading volume and prices. Hiraide said this provides potential practicality for the application and if listed on a third-party exchange, it will make it even more difficult to distinguish these assets from traditional securities. Therefore, this platform may attract the attention of securities regulatory agencies and face the risk of being classified as an unregistered security product.