Decline and Criticism Plague Friend.tech as Critics Declare Network "Dead"
Summary:
The decentralized social network Friend.tech has faced criticism and has been declared "dead" by critics after experiencing a significant drop in key metrics such as activity, inflows, and volume. The platform, centered on buying and selling "keys" for private messages, had an initial successful launch but has since seen a decline in fees, transactions, and user participation. Critics attribute the platform's downfall to issues of greed and poor execution.
The decentralized social network Friend.tech has faced criticism and been declared "dead" by critics due to a significant decline in key metrics such as activity, inflows, and volume. The network had a successful beta version launch on Coinbase's layer-2 Base on August 11, with fees surpassing $1 million in 24 hours on August 19, outperforming Uniswap and the Bitcoin network. However, fees have since plummeted, dropping over 87% to around $215,000 on August 26. Transactions on the platform have also declined over 90%, from nearly 525,000 on August 21 to just over 51,000 on August 27. Many users on Twitter have expressed condolences for Friend.tech, with some declaring it as "dead." The platform focuses on buying and selling "keys" that allow users to send private messages, with the platform taking a 5% cut. Notable figures from both the crypto and non-crypto communities, such as podcast host Cobie and Russian protest group Pussy Riot, have shown interest in Friend.tech. However, Coinbase payments risk manager Lisandro Rodriguez believes the platform's demise is a result of "greed and poor execution." The number of buyers and sellers on the platform has also significantly decreased, with around 10,000 buyers and 7,800 sellers on August 27 compared to over 58,000 buyers and 27,000 sellers at its peak on August 21. Inflows have also taken a hit, dropping by nearly 90.5% from the high of $16.8 million on August 21 to around $1.6 million on August 27. Some members of the community had already predicted a decline for Friend.tech, citing unsustainable user key price increases and questioning the willingness of users to pay such high amounts for private chats. The platform has been compared to the 2021 DeSo app BitCloud, with some speculating that Friend.tech will meet a similar fate.
Published At
8/28/2023 2:24:15 AM
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