Friend Tech goes from viral success to virtual ghost town

Decentralized societal media protocol Friend.Tech captured attraction past twelvemonth but has noticeably faded from the radar recently.

CryptoSlate, utilizing Dune Analytics data compiled by 21.co, discovered a concerning inclination – the platform’s nonaccomplishment to pull caller users, coupled with indifference from its existing idiosyncratic base. On Jan. 28, the level garnered a specified 19 caller users engaged successful astatine slightest 1 transaction, a stark opposition to its highest of implicit 70,000 users successful September.

A abstracted dashboard by Cryptokoryo sheds airy connected the grade of the downturn. On the aforesaid date, Friend.Tech recorded lone 5,544 transactions, signaling a staggering 99% alteration from its highest measurement of astir 540,000.

Friend.Tech Transactions (Source: Dune Analytics)

Adding to the downward spiral, DeFillama’s data reveals a accordant antagonistic outflow passim this month.

Per the data, Friend.Tech experienced affirmative USD travel lone connected Jan. 16, with $313,000 entering the platform. However, much than $5 cardinal flowed retired connected different days, importantly dropping the full worth of assets locked connected the level to $30 million.

Friend.Tech USD Flow and TVL (Source: DeFillama)

Moreover, this diminution is further reflected successful the fees generated by the network, plummeting from a regular mean of astir $1 cardinal to a specified $50,000 successful the past 2 days.

‘Biggest lowlight’

Several reasons could beryllium blamed for Friend.Tech’s falling numbers. However, issues began erstwhile aggregate users suffered sim-swap attacks owed to the platform’s lax security. CryptoSlate reported that astatine slightest $20 cardinal successful the level users’ assets were susceptible to these attacks.

While efforts to address information concerns were made promptly, this incidental reflected the platform’s challenges successful keeping gait with bug fixes and implementing indispensable policies for its rapidly expanding idiosyncratic base.

The platform’s viral occurrence besides spawned copycats similar Stars Arena connected different blockchain networks, including Avalanche. DeFillama information shows these protocols are besides struggling for adoption and use.

Teng Yan, Head of NFT Research astatine Delphi Digital, called Friend.Tech’s setback the “biggest lowlight” of the past year. He highlighted the project’s imaginable to marque crypto mainstream but criticized its team’s execution.

“[Friend.tech] could person been a apical user app bringing crypto mainstream. An on-chain estimation furniture built connected apical of existing societal graphs. Great thought but mediocre execution,” Yan added.

Friend. Tech’s viral growth

Friend.Tech introduced an innovative mode for users to monetize their popularity successful the crypto space, allowing users to bargain and merchantability “keys.” These keys enabled buyers to nonstop backstage messages to sellers.

As a result, respective high-profile figures, some from the cryptocurrency satellite and the broader amusement industry, utilized Friend.Tech to link to their community, and the level was driving transactions connected Base, the layer2 web it was built on.

Despite this archetypal success, the blockchain-based societal web faced a accelerated decline, losing 95% of its enactment wrong a period of launch. Yet, a revival occurred successful September, with regular trading volumes nearing $10 million. At its peak, the protocol boasted a TVL exceeding 30,000 ETH ($50 million), outperforming giants similar Uniswap and the Bitcoin web successful fees generated.

The station Friend Tech goes from viral occurrence to virtual shade town appeared archetypal connected CryptoSlate.