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Friend Rating Review


Investment Rating

Expiry date : Expired 16 Aug 2018


We have reviewed the project's progress as of January 2019 and identified that the team has not released many features which were set as milestones on the roadmap, namely, voice device, speech integration, youtube integration and others. In addition to that, project's ICO has been postponed to late-January 2019, therefore, the project's rating has been decreased to Risky+

The Friend project has an interesting concept to bring to a dynamically developing market as well as a functioning product which started development in 2014.

The white paper presents a detailed roadmap for the project, where almost every detail is planned. The team has carefully worked out the development of the platform and progressive stages for its implementation. The description of the technical aspect of the platform and its services, presented in three separate documents, confirms the fact that special attention is paid to functionality.

Regarding the upcoming TGE, we would like to emphasize that at the time of writing 93% of FNT Tokens allocated for preliminary sale have already been sold (there is almost a month until the end of the pre-sale).

However, even the current project has risks that an investor must consider before taking part in the purchase of FNT Tokens. The main risks for the Friend project are as follows:

  • Team wage levels are high due to the fact that the team is concentrated in Norway. It is unknown if Friend will be able to maintain such a costly team on an ongoing basis.
  • 50% of tokens belonging to the team will be placed in their ownership 30 days after the completion of the TGE.
  • The team still has 6% of the project; will it have the motivation to develop the project?
  • Due to lack of feedback, the team does not interact with the community.
  • The developers did not provide any economic forecast or statistical data.

Given the above risks, we are not able to assign a higher rating to the project.

General information about the Project and ICO

FriendUP is a virtual computer platform designed to unite web applications and develop an ecosystem for use on all devices with access to the network. FriendUP offers users a computing environment of agnostic, available via the Friend workspace, and a user interface based on HTML5 and Javascript where files and applications can be managed.

White paper
BitcoinTalk: No information

The total number of tokens produced will be 2,000,000,000 without re-issue.

The distribution of tokens will be as follows:

  • Friend Team - 6%, which is 120,000,000 FNT
  • Friend Network AS - 12%, which is 240,000,000 FNT
  • TGE participants - 82%, which is 1,640,000,000 FNT

Smart contract platform: Ethereum Blockchain

Contract type: ERC20

Token: FNT


Pre-Sale start date: January 04, 2018

Pre-Sale end date: February 18, 2018

Token emission: 80,016,000 FNT

Token price: 1 ETH=20,000 FNT

Minimum transaction amount: 1 ETH

Maximum transaction amount: no limit

Accepted payment: Fiat (USD, EUR, GBP), ETH

Bonus: 20% of tokens to all participants in the pre-sale



Start date: February 19, 2018

End date: March 9, 2018

Token emission: 1,559,984,000 FNT

Soft cap: 25,000 ETH

Hard cap: 75,583.3 ETH

Token price: 1 ETH=20,000 FNT

Minimum transaction amount: 1 ETH

Maximum transaction amount: no limit

Accepted payment: Fiat (USD, EUR, GBP), ETH


  •  15% of tokens are intended for participants who are the first contributors to reaching the goal

of 25,000 ETH.

  •  10% tokens intended for the first participants to reach the goal of 50,000 ETH.

If the minimum funding goal of 25,000 ETH is not reached during the TGE period, all funds collected will be sent back to participants.

Description of the services and scope of the Project

Cloud computing is gaining more and more momentum, allowing people to work with their required data via any device with access to the internet.

The FriendUP platform is a framework that allows individual developers or development teams to deploy and integrate their applications with Ethereum and other decentralized technologies remotely.

To create a Virtual Friend Cloud Computer, a user selects a template that suits his needs and configures the necessary software within the Friend Network. Setting up a virtual environment includes standard applications, such as e-mail, web and Windows applications or disk space (with various access settings) and visual preferences such as desktop themes. Various settings and links to resources can be stored as templates which will enable users to quickly access the required configuration.

The FriendUP platform provides a set of basic applications for user convenience - small applications that enable a user to adapt the system for his needs.

  • Account – user account management that enables:
    • adding / changing personal information.
    • adding more storage space.
    • managing keys.
    • Displaying of information in a user account block.
  • Users – An option for system administrators, allowing the editing of their users. Anyone on the platform can become an administrator; for this, a node will require configuring in one of two ways (Network or Access node) which differ in functionality.
  • Server – enables administrators to manage their node and change various settings; applications can also be tested in a software repository.
  • Friend Shell – enables advanced users to interact with their Friend environment via precision commands and arguments. Remote control using encryption keys is also possible.
  • Language – for changing of language settings including speech settings.
  • Wallpaper – for customizing the appearance of the Friend environment, for example the setting of an image or video as a background.
  • Calculator – a simple calculator with basic functions
  • Calendar – a modular extension system that allows integration of various calendar servers such as iCal, Microsoft Exchange and others
  • Disk Catalog – enables users to connect to different servers using different DOS drivers
  • Software – list of installed / available applications sorted alphabetically or by category
  • Looknfeel –themes can be changed, enabling a user to alter the appearance of the interface completely.
  • Whiteboard – a fully featured multi-user whiteboarding application
  • Friend Chat – a text / video messaging application that enables the creation of virtual rooms where users can join both text and video sessions.

Developers can use the Friend Create application, which is a programmer's editor built into the Friend Workspace.

Each user can have a data store located on the Friend node; users can also integrate convenient third-party services such as Google Drive, Dropbox, Storj, IPFS or IPDB.

FriendUP includes the following components:

  • Friend Core – the serving kernel of the platform
  • Libraries - feature sets that run in Friend Core and implemented as runtime linked libraries
  • Modules – these allow developers to connect their applications to Friend Core
  • File System Drivers – enable users to connect to any structured or unstructured storage engine
  • Friend Workspace – a functional desktop environment that allows running multiple tasks in one tab of a web browser, giving access to the Friend Cloud Computer from any device
  • Friend Network – designed to run applications, access services, and use data resources.
  • Friend Store – a platform store where you can download both paid and free applications, as well as Friend Templates for Friend Cloud Computer users. Advanced users can independently create and sell Friend Templates to Friend Store or distribute them for free.

Friend Account will allow interaction between Blockchain based and off-chain based providers and users. In addition to paying in FNT, the Friend Wallet will enable paying for Friend Store services in fiat or by invoice. For purchases in the Friend Store, fiat and various cryptocurrencies will automatically convert to FNT.

Using FNT Tokens enables not only purchases in the Friend Store; users of the platform running Friend Core servers will be awarded with tokens; the amount will depend on the quantity of data transferred to users, as well as the number of requests for services made in the Friend Store.

FriendUP is a cloud-based operating system that enables developers to work in a virtual environment without being tied to a desktop computer or laptop; such mobility may be in demand, in our opinion. In addition, we think that the ability to use both tokens and fiat on the payment platform will attract both cryptocurrency supporters and those accustomed to using fiat only, which will increase the number of potential FriendUP clients.

Engineering features of the project

The project has a page on GitHub with 5 repositories, including the FriendUP platform repository:

At the time of writing, the smart contract was at the development stage; there was no way to get acquainted with its code. However, the developers commented as follows: "The smart contract is being finalized with developer/supplier selected by Zeppelin - with audit by Zeppelin." According to information provided, the platform will use several separate smart contracts for different purposes;  the Friend Network Token (FNT) will be ERC20 Blockchain Ethereum standard.

FriendUP has been in development since February 2014. Currently, 1.1 version and the platform is ready for use.

Using HTTPS or secure web sockets, platform functionality is available from any device that has a web browser - PC, smartphone, tablet, VR systems, Points of information / kiosks and TVs. Security of connection between server and client is provided using SSl / TLS encryption.

Friend Core manages the Friend Network server aspect and processes encrypted connections between servers and clients. Friend Core is written in C for compatibility with other programming languages.

There are six major libraries available to developers in Friend Core:

● system.library

● mysql.library

● application.library

● image.library

● properties.library

● z.library
The Friend modules allow developers to create server components in several programming languages such as PHP, Node.js, Python, etc.

The website offers a detailed developer's manual in three documents; each of them is devoted to a separate topic:

  1. FriendUP Developer's Manual Volume 1 - Programmers
  2. FriendUP Developer's Manual Volume 2 - Friend DOS and Shell
  3. FriendUP Developer's Manual Volume 3 - Friend Core API Documentation

Market review

The current public cloud computing market includes business processes, software, platforms and infrastructure provided as services. These services are provided on remote servers for a large number of customers. The world market for public cloud services is projected to grow by 16% in 2018 and make $287.82 bln, increasing from $246.841 bln in 2017, according to Gartner, Inc.

The strongest growth is in Cloud System Infrastructure Services (IaaS), projected to grow by 32% in 2018 and reach $45.559.6 bln. Software as a service (SaaS) is expected to show growth of 19% to $55.143 bln.







Cloud Business Process Services (BPaaS)






Cloud Application Infrastructure Services (PaaS)






Cloud Application Services (SaaS)






Cloud Management and Security Services






Cloud System Infrastructure Services (IaaS)






Cloud Advertising






Total Market






More and more workload is moved to the cloud.Currently the market shows the following trends:According to Citrix and IDC research, 94% of companies worldwide are actively preparing for increased use of cloud technologies: they are engaged in either the revision and transformation or the modernization of their network infrastructures to simplify the delivery of applications.

  • The cost of cloud storage and computing has decreased but there are problems optimizing these costs.
  • Security is no longer the main problem for the cloud.
  • Significant growth in use of hybrid clouds.
  • Open Source use.
  • The rapid spread of containerization technologies and DevOps.
  • Automated software-defined storage.
  • Next-generation networks are built at the junction of clouds, SDN (Software-Defined Networking) and NFV (Network Functions Virtualization).
  • In 2017, 35% of all applications were deployed in the cloud.
  • Revenue from public cloud services will grow by 22.8% per year over the next few years, which is 6 times higher than the growth rate for traditional IT products.

According to forecasts, 80% of industrial applications will be transferred to the cloud within 10 years; all development and testing of software will be implemented in the cloud, virtually all corporate data will be stored in the cloud, and corporate clouds will become the most secure IT. 80% of IT budgets will be spent on cloud by 2025, rather than traditional IT systems; almost all new applications will become SaaS-applications; in the next 10 years investments in cloud infrastructure will grow rapidly.

The arguments for using cloud services are the following:

  • reduction of capital expenditure and maintenance expense for the support and updating of IT.
  • reduction of labor costs.
  • Ease of clear investment planning in IT.
  • scalability of systems as desired by the user.
  • flexibility of settings and services.
  • ability to integrate various services on a single platform.
  • access from any device with an internet connection.
  • security via mandatory encryption and backup algorithms.

We believe that the Friend project is able to assist this huge market, which has great growth potential, to enter the world of blockchain and thereby avoid reliance on a centralized infrastructure.

Competitors and competitive advantages of the project

The Friend team acts as an IaaS provider. Infrastructure-as-a-Service (IaaS) is provided as an opportunity to use a cloud infrastructure for self-management of processing and storage of networks and other fundamental computing resources; for example, a user can install and run arbitrary software that can include operating systems, platform and application software.

There are many projects that deal with distributed storage using blockchain technologies. Such projects include Storj, Sia, MaidSafe, Decent, LBRY Credits, FileCoin, Genaro and others, many of which are at an early stage of development and testing. However, these projects are inferior in functionality and capabilities compared with Friend, which enables developing and deploying software applications, storage for databases and other functionality, providing the necessary processing power. Therefore, all the above projects are not direct competitors for Friend.

However, Friend has major competitors among centralized companies. Amazon Web Services (AWS), Microsoft Azure and Google Cloud Platform which offer basic capabilities for flexible computing, storage and networking, are potential main rivals. All three providers allow clients to run various applications and services in a cloud environment.

Amazon Web Services. Created in 2006, the Amazon cloud platform has become a pioneer in this field, having won a considerable market share. With constant innovations and improvements over the years, AWS has introduced more than 70 services with a wide range of coverage worldwide. Servers are available in 14 geographic regions. The market share for the company is steadily growing; Amazon's cloud technologies covered 31% of the market in the second quarter of 2016.

Microsoft Azure. This system was launched in 2010 and it is rapidly developing. Microsoft Azure is a multi-faceted system that provides support for many different services, programming languages ​​and frameworks. The cloud includes more than 60 services and data centers in 38 different geographic regions. Currently, Microsoft Azure occupies 11% of the market.

Google Cloud Platform. Launched in 2011, Google’s is the youngest cloud platform and primarily meets needs for Google and YouTube searches. Currently, the company has more than 50 services and 6 global data centers. Google Cloud Platform has a 5% share in the cloud services market.

The Friend project has the following advantages over its competitors:

  • Decentralization
  • Partners. The Friend team uses its partners’ strengths. Security audit is conducted by Redscanin. Speed ​​will be enhanced by Golem and other organizations, using a network protocol for the distribution of services. The smart contract is created in close cooperation with Zeppelin.
  • Speed. Using the Friend Network allows decentralized applications to be deployed and distributed in a matter of seconds.
  • Security. Personal information is encrypted both in transit and at rest, ensuring the security and protection of digital assets. Friend uses client-side encryption for authentication and offers the ability to encrypt data at rest using file system drivers.
  • Availability. Access to applications and Friend functions on any PC or smartphone at any time.
  • Zero cost of deployment.

Friend is entering a developing market where more and more companies aim to occupy their niche, offering innovations, updates and improvement. Competition between the largest players in the market will depend also on pricing on the platforms, which in recent years has declined because of a leap in the development of cloud services. Friend must take this into account when creating pricing on their platform in order to be competitive not only in the use of advanced technologies, but also in the cost of cloud services provided.


At the time of writing, the Friend team has 23 employees. The following specialists occupy key positions.

Arne Peder Blix – CEO and Founder (February 2014 – till present), LinkedIn. Arne bootstrapped a complex FinTech SaaS and professional services company from the ground up; 2002 - 2015. As Investor and Executive Chair, he successfully groomed and sold a mobile wallet infrastructure FinTech company (host card emulation and tokenization).

Current projects:

  • Chairman and Investor - Uninite apartment rental in Norway (January 2017 – present).
  • Chairman and Investor - Drylab R&D AS Software for film and TV creators (December 2014 –  present).
  • Management for hire, advisor, investor - AccA Invest. Family investment company within the Technology, Media and Telecom sectors (TMT) (June 2013 - present).
  • Chairman, Directorships and assignments - AccA Invest AS (1998 - present).

Hogne Titlestad - Founder, Chief Architect and Chief Operating Officer (March 2014 – present), LinkedIn. Has taken part in such projects as Excursor, ARENA Enterprise, Celcius, Corvo Stage One, Network of Nodes.

  • CEO - Friend Studios AS (March 2011 – present).

Rune Trengereid - CEO Softmerge (September 2017 – present), LinkedIn.

25-year international career in steering strategy, sales, operations and transformation initiatives leading cross-cultural and geographically dispersed teams in politically and geographically challenging locations. Successfully balancing corporate standards against local issues and competing agendas. Has work experience in such companies as Baker Hughes, GE Money Bank, Capgermini, E.ON Exploration and Production.

Liat Perlman - Board Advisor, Business and Corp Development, Sales, Alliances, Strategy (July 2015 –  present). San Francisco Bay Area, LinkedIn. 20+ years of B2B and B2C technology sales, partnerships, strategy, management.  Has work experience with such companies as: Loqate Inc., PlaceLogic Inc.

Current projects:

  • Board Advisor, Business and Corporate Development, Sales, Alliances, Strategy - Zikher Inc. (March 2015 – present). Digital lending platform for bank, credit union.

Thomas Wollburg - Chief Technology Officer (September 2017 – present), LinkedIn. Has work experience with Statoil.

Current Projects:

  •  Software Engineer - Friend Software Labs AS (December 2015 - August 2017).
  •  Owner - Nøtteeske AS (May 2015 - present) online store for phototechnics accessories.

Christoffer Herheim - Chief Commercial Officer (August 2016 – till present), LinkedIn. Specialist in the field of Marketing, Strategy, Economics, Finance, Accounting and Sales. Current projects:

Paul Lassa - Chief Product Officer (September 2017 – present), LinkedIn. Specialties: System requirements, architecture, development, and validation - ASIC, Hardware, Software. ASIC and Firmware integration, performance, power management. High-volume, cost-sensitive consumer product development and release to production. Has work experience at SanDisk.

  • Advisor, Engineering Liason - Friend Software Corporation AS (August 2015 – August 2017).

Jolanda Engelvaart - Chief Financial Officer, Chairman (2017 –  present). LinkedIn.

Current projects:

  • Accounting Administrator - Saga Heritage Foundation (2017 – present);
  • Accounting and Finance Manager, Chairman - Softmerge AS (2017 – present);
  • Accounting and Finance Manager, Chairman - Friend Studios AS (2015 – present);
  • Accounting and Finance Manager, Chairman - Friend Software Labs AS (2014 – present);
  • Accounting and Finance, Office manager - Sagabok AS (October 2013 – present);
  • Accounting and Finance Manager / Chairman - Ideverket AS (2011 – present).

David Pleasance - International Sales and Marketing Director (2016 – present), LinkedIn. Has work experience as Managing Director, General Manager, Vice President, Sales and Marketing Director, National Accounts Manager, Business Owner.

Advisors and evaluators:

Mikko Terho - CTO Mobile Software and Site Manager Finland R&D, Huawei, LinkedIn. Research and Product Development in various managerial and inovator roles in Nokia form 1983 to year 2012. Founder of Wireless Application Forum and Symbian Ltd.

Mark Turrell - CEO Vork & Orcasci / WEF YGL & Tech Pioneer / Author 'Scaling', LinkedIn. Mark is working with start-ups as a friend, advisor and consultant to address various issues.

Alexander Bakos Leirvåg - Innovator at Grid Labs, LinkedIn. A data scientist, that enjoy the challenge of getting value out of data. I am currently working with A.I and Blockchain.

Pekka Abrahamsson - Professor of Information Systems at University of Jyväskylä, LinkedIn. An experienced software professor. Empirical software engineering, software startups and software bots define his research interests.

Jens Guthe - Partner at GK Banking Partners, LinkedIn. Senior banker, consultant and manager with over 30 years of International and banking experience within Corporate and investment banking, Financial institutions, Compliance, Transaction services and Capital Market.

Summarizing this section, we can conclude that the team is mainly composed of experienced administrators and managers. A strong team of technical specialists was assembled. However, such a large-scale project assumes the presence of a large number of specialists in various narrower fields (network and system engineers,  blockchain developers, mobile developers, specialists from the legal field, etc.). The current staff is not sufficient in this respect.

Development strategy and Roadmap

The Friend team commenced developing its platform in February 2014; in March 2014 the Friend Software Corporation was founded in Stavanger, Norway. Currently there are two offices in Norway, in  Oslo and Stavanger.

The Friend Software Corporation is creating an interactive OS cloud, requiring browser and internet access.

The website presents a detailed roadmap for the period of development until the end of 2021 inclusive. The budget for roadmap planning is calculated on the basis of attaining maximum financing.

The team has set a goal for development of 16 main modules. Let us consider them in detail:

  • Blockchain integration. The team begins developing the technical documentation in Q1 2018. In Q2 2018, the team begins to develop an integration module. The development will continue in stages until the end of 2021. After Q2 2019, an integration phase with various cryptocurrencies (such as Ethereum and Steemit) will take place.
  • Decentralized scaling. Development begins in 2018. A testing phase begins in Q4 2018. In the future, development of this functionality is reduced to building an autoconfigureable network, up to Q3 2019. It will then move to the R & D stage to improve performance of its functionality. A database will be developed based on blockchain as well as an automated system for configuring the network on hosts.
  • Friend Store. Development will take place in Q1-Q4 2018. The first version will be launched in Q1 2019 along with further integration with various services and support.
  • Golem Integration. Phased integration will take place in Q1 2018-Q1 2019. From Q4 2019 up to Q3 2020, further attention will be paid to security and encryption.
  • Filecoin Integration. Q2 2018 - integration, Q3 2018 - testing. Q1 2019 – release and further support of functionality.
  • Friend Network. Q1 2018 - peer-to-peer implementation between users; Q2 2018 – additional support for working via the Friend Core server; Q3 2018 - engaging a third-party team to conduct a penetration test. In the future - introduction of support for various network standards (5G, 6G).
  • Friend Core.  Active development from Q1 2018 until Q4 2018. The beginning of monetization, integration with various services and optimization from Q1 2019. The second and beta versions are planned to be launched in Q4 2019 as well as the localization of Friend Core in 30 languages. Q3 2020 – translation of documentation into 30 languages.
  • Friend Workspace. Active development throughout the project. Q4 2018 - support for desktop applications, launch of support for TV and integration with voice assistants. Q2 2019 - full launch of Smart TV support and the first beta VR / AR (virtual / augmented reality). Q4 2019 - localization in 30 languages, release VR / AR API and complete voice management of Workspace. In the future, work will be implemented to optimize, localize and integrate with various services up to the end of the project.
  • Friend Chat. Active development up to Q3 2018. From Q3 2018 - integration stage with such services as Vimeo, YouTube, VR / AR and voice management services.
  • Friend Create. There are various packages for developers throughout the project (testing, debugging, development, documentation, etc.).
  • Liberator Open Source. Publication of various open source modules under the open source license.
  • Streamr Integration.  From Q2 2018 - integration with Streamr; another possibility for monetization.
  • Android App & IOS App. From Q2 2018 - access to specialized application stores. From Q4 2018 - Friend Workspace adapted for mobile devices will become available. From Q4 2019 - beginning of the integration with VR / AR and the experiment to replace Windows Shell. Q2 2020 - full VR / AR support, decision on further development or cancellation of the Windows Shell replacement project.
  • Windows App. From Q1 2018 a beta version will be available for download; Q3 2018 - technical documentation and application will be published in the Windows Store.
  • Friend Book PC.  As the founders explain, they intend to create a system similar to ChromeOS; they are not going to produce their own hardware. An engineer from Huawei has already joined the open source project; he will be engaged in porting the platform to the company's phones. In the future, the founders are planning to attract more partners to implement the Friend Book PC hardware platform.
  • Friend Shell. Development of a proprietary shell for executing commands begins from Q1 2018. Almost all functions available with popular shells (Windows Shell, Linux Shell, etc.) will be introduced from Q4 2018. In the future, support and scripting will be added (in such languages as bash, JavaScript, Python, PHP, etc.) as well as access via SSH and analysis of commands in natural language and artificial intelligence interfaces.

It is important to note that the team has planned all technical aspects to the smallest detail but has not taken several important points into account:

  • Only one test for unauthorized penetration is planned, in Q3 2018, although the plan is for the period until the end of 2021.
  • There are many items in the plan the names of which do not reveal the significance without context (for example ‘wifi applet’).
  • The Friend account module is not reflected in the roadmap, although it is one of the key components of the Friend Network. «The Friend Account is a core component of the Friend Network. It will be designed to ensure flexibility and control for users and will support the exchange of digital products and services between blockchain based and off-chain-based providers and users. As part of our roadmap, we will establish a Friend Account as shown in the figure above, which will hold the Friend Wallet and enable payment for services in Friend Store with fiat and invoice (automatic exchange to FNT)»
  • Listing of FNT tokens on exchanges. In the course of communication, we found out that tokens will appear on exchanges 30 days after the completion of the TGE. Currently, the list of exchanges is under discussion.

Marketing strategy

When developing their marketing strategy, the Friend team paid attention to activities that could attract not only end users but also developers. These are activities such as:

  •  Participation in various conferences, forums and seminars. The last and most significant of these are the following:
    • "Forum" at Oslo Science Park / Forskningsparken, Gaustadallè 21, Oslo. Friend was the organizer of the event and its founder, Arne Peder Blix was the moderator.
    • Conference in Mexico «Devcon three». This conference was useful for Friend. According to the founders, their list of business contacts was significantly enlarged after this meeting, among which there are both potential users and developers.
  • Conducting a competition for developers. This was the best solution not only to attract interested and talented professionals to the platform, but also a great way to consider many interesting and successful applications for the platform.
  • Placing a large number of training videos and commercials with examples of platform usage on the Friend website and YouTube channel. It is worth noting that all these videos are very clear, informative, positive and generally useful.
  • Press coverage. The Friend project has been given coverage in one of Norway’s best financial newspapers, Finansavisen. After the release of this article in Norway, the project became even more well-known and interesting to potential audiences.
  • Currently, thanks to the marketing team, the Friend project’s developers have access to many thousands of Commodore / Amiga users worldwide. Since FriendUP was developed as a kind of modern version of Amiga OS, it is close to many influential people who are interested in the success of the project.
  • Platform technologies are already used successfully in various commercial products such as Embarcadero, Micro Focus, Google, IBM (Cloud and GBS), Samsung, Ethereum, Golem, Jagex and Snakeware.
  • Currently, the team has such major companies such as Huawei, Alere Medical and Hove Medical as potential users.

In addition to the above activities aimed at increasing the number of platforms, Friend will transfer 70-80% of the total number of participants from the classic platform based on fiat to the blockchain-based FriendUP project.

It should be noted that the team has allocated a small budget for marketing (from 5% to 8% depending on the results of TGE) but spends these funds effectively and competently.

The advertising campaign for the forthcoming TGE, unlike the marketing strategy of the platform itself, unfortunately, is not given much attention. The main activities are:

  • Maintaining accounts on Linkedin, Facebook and Twitter. The number of subscribers does not exceed 650; despite the fact that the content is recently replenished in sufficient volume the activity of potential investors remains low.
  • According to the developers, the founders have contacts with potential investors: «Presale bookbuilding now -several VCs considering 5 mUSD checks». We also note that Friend at the time of writing sold 82% of tokens allocated to the pre-sale. In the meantime, pre-sale continues.
  • Press coverage and participation in conferences and forums described above.

The channels for promoting the forthcoming TGE could be used more efficiently; for example, the developers did not foresee the following:

  1. Communication with the community. Interested parties cannot ask a question and obtain a quick response due to the lack of a thread on Bitcointalk, a chat on Telegram or Slack.
  2. The Bounty program. This is an excellent marketing tool to increase the liquidity of the project in the run-up to the token sale. With its proper organization, the bounty program gives the project a good reputation.

The team’s marketing strategy has been worked out. The promotion of the Friend product is thought out at a proper level, but TGE promotion is at lower level. We believe that this is due to the fact that currently there are agreements with potential investors, important for a succesful token sale.

Economy of the project

Depending on the outcome of financing, the founders outline 3 scenarios for distribution of funding for the project’s development:

• If the hard cap is reached

• If an average level of funding is attained

• If the soft cap is reached

Distribution table:


Maximum financing (75 583,3 ETH)

Medium financing

(50 000 ETH)

Minimum financing (25 000 ETH)

Friend Team




Air drop




















Office and indirect




In order to increase use of the Friend Store, when the hard cap or a medium amount of funding is reached, developers will distribute 5-10% in FNT tokens to all accounts containing 0.5 ETH or more. When the TGE ends, the Friend Network will immediately purchase FNT tokens. When the tokens are created, a smart contract will be set up to distribute them.

In each development scenario, different expenses for "Friend Team" are also provided. The amount of funding allocated to the team is between 44% and 65%:

  • If the hard cap is reached, 44% is allocated for financing a team of 40 or more people for the next 5 years.
  • With medium financing, 50% of the funds received will be distributed to a team of 30 employees for the next 4 years.
  • With minimal financing, 65% of the budget will be allocated to a team of 25 employees for the next 3 years.

"Friend Team" is allocated a very large portion of the budget due to the high wage levels in Norway where the staff are located. Even if you consider the minimum amount of funding, 25,000 ETH, a team of 25 people requires 16,250 ETH over 3 years. This is approximately 18 ETH per employee per month ($18,500 at rate of 1ETH = $1025).

Creating the budget for the team, the developers proceeded on the assumption of 1 ETH = $ 800. Therefore, each employee's funding is $14,000. Despite the fact that the entire staff is concentrated in Norway, the wage amount is still overestimated even at $14,000.

In our opinion, with such a large amount of the budget allocated to the team, it should be a much larger team; 25 people is clearly not enough for such a global project. This is quite possible to solve by lowering wages.

The platform will receive revenue from commissions on the Friend Store of 11%. However, the final amount of commission is still being discussed by the developers and could change.

The team has not provided a forecast regarding levels of income during the first years of platform operation or the number of expected users, referring to the fact that this data is not for public use. But we received the following comment regarding payback from the platform: «The Friend Store will generate revenues which are estimated to exceed operational costs for the Friend Network AS during year 3».


The main risks for the project are related to the Friend team.

Firstly, the “Friend Team” is allocated a very large budget, up to 65% of all revenue from the token sale. The purpose is increasing the number of employees, distributed for a period of 3 to 5 years depending on the results of the sale. Such a large part of the budget is allocated to the Friend Team due to the fact that the team is concentrated in Norway, where living standards and wages are high. It is difficult to predict whether it will be possible to keep such a team over 3-5 years, allocating more than $4m each year for wages.

Secondly, the defrosting of half of the tokens assigned to the team is scheduled for 30 days after the end of the token sale. Despite the fact that this figure will be only 3% (half of the remaining 6% for the team), this could create additional pressure on the price of the FNT token. In our opinion, this period should be at least a year longer. We also think that the project team leaves too little for itself, which could affect its further motivation to develop the project properly.

Thirdly, despite the fact that the team consists of experienced managers and administrators, it does not have highly specialized staff; the team needs to attract specialists from other areas. However, if minimum funding amount is reached, the number of staff will be only 25, i.e. the team will only increase by 2 employees, and by 7 if medium financing is obtained. This is clearly not enough to implement such a large-scale project.

In addition to risks associated with the team, the founders do not provide any statistical or forecast data according to which the project economy or attractiveness of the token can be analyzed.

We also think that the upcoming TGE has not yet gained sufficient interest among potential investors; the community is not interacting sufficiently with the project’s co-owners. Social media activity among potential investors is low, due to the fact that the team did not pay enough attention to the marketing strategy for the token sale.

We have not detected any other significant risks that could adversely affect the attractiveness of the Friend project.

Token investment attractiveness

The FNT token is a classic infrastructural token by which all purchases in the Friend Store are made.

Since the developers do not provide information on the number of potential users of the platform, the volume of their purchases using tokens or other forecast data, we cannot predict the growth of the price of the FNT Token.

However, we draw the investor's attention to the facts that can affect the attractiveness of the FNT token.

Factors that promote growth for FNT Tokens include:

  • Friend is planning to issue a limited number of FNT tokens, equal to 2 bln. There will be no additional emission.
  • The price of FNT will grow along with the popularity of the platform. Therefore, marketing aimed at creating hype around the project will play a significant role in the value of the token. The more users join the Friend project, the more popular it will become. This will increase the price of FNT. In addition, potential and actual Friend clients include large and well-known companies; this is also a positive factor.
  • The developers have set an equal 20% bonus for all early investors at the pre-sale stage. Such a low bonus should not allow the token price to increase much when entering exchanges.
  • The absence of a bounty program is a drawback for a marketing strategy aimed at attracting investors. For token attractiveness however this can be attributed as a strong point.

Factors that could reduce the price of FNT:

  • Tokens assigned to the team will be frozen for up to three years. However, 50% of these tokens will be defrosted 30 days after the TGE ends as a reward. The remaining 50% will be available to the team in each subsequent year at a rate of 16.7%.

The conclusion is that prerequisites for the growth of the FNT token price can be characterized as positive. Once again, we would like to draw investors’ attention to the fact that this conclusion is based only on factors that could affect growth and decline in the token price. Any forecasts regarding the attractiveness of the token are not possible.

The information contained in the document is for informational purposes only. ICORating received monetary compensation in the amount of $14000 from the entity rated in this report for completing the ratings report. However, the entity rated in this report did not have the opportunity to approve this rating report before the report was published, nor did the rated entity have the opportunity to edit or remove this report once it was published. The views expressed in this document are solely those of the ICORating Team, based on data obtained from open access and information that developers provided to the team through Skype, email or other means of communication. Our goal is to increase the transparency and reliability of the young ICO market and to minimize the risk of fraud. We appreciate feedback with constructive comments, suggestions and ideas on how to make the analysis more comprehensive and informative.