- The buzz surrounding the social networking app Friend.tech has experienced a dramatic decline in network activity and profile sales.
- Friend. Tech’s daily trading volume has declined 94% since its peak, as has the number of daily traders.
- Other data, such as transactions, MEV bots, and new traders, have also fallen by more than 90% since last week.
Friends.tech is currently experiencing hard times, prompting some to predict its extinction. The social media network, which attracted attention due to its spectacular expansion, has been hard struck by a significant decrease in key indicators, leading many to question its future in an increasingly competitive landscape.
The rapid rise and collapse of Friend.tech is not only a story of transient triumph, but it also sheds light on the issues that decentralized networks face in the crypto space.
Friend.tech Early Victories Overshadowed by Growing Difficulties
On August 11, Friend.tech began its adventure by releasing a buzz-worthy beta edition on Coinbase’s layer-2 Base. A week later, the platform generated headlines when its transaction fees surpassed the million-dollar barrier in less than 24 hours, surpassing major competitors such as Uniswap and even the Bitcoin network. The excitement was, however, short-lived.
Following its initial popularity, Friend.tech’s fortunes began to deteriorate. Daily transaction costs, which peaked at $1.7 million on August 21, had dropped by more than 87% by August 26 to a measly $215,000, according to DefiLlama.
Friend.tech’s decline was quickly reflected in transaction volumes, which fell by more than 90% from a peak of about 525,000 on August 21 to barely more than 51,000 on August 27, according to data provided by Crypto Koryo using Dune Analytics.
Lisandro Rodriguez, Coinbase’s payments risk manager, tweeted that the platform is “dead” due to “greed and poor execution.”
Bots: From Grace to Bane
According to Tom Wan of 21.co, the bots that once drove Friend.tech’s transaction frenzy are now being blamed for its demise. According to a report by Bloomberg, these automated trading bots are meant to exploit quick price changes, which have been distorting transaction orders.
This malicious behavior has allowed bots to preempt influencer-initiated transactions, purchasing assets at rock-bottom prices before creators can, pushing them to acquire their own assets at inflated costs. Such manipulation has undoubtedly deterred content creators and users, threatening the platform’s future.
Uncertain Horizon
Friend.tech’s journey, once lauded as a triumph in decentralized social network space, is now a cautionary tale of the difficulties nascent crypto platforms face. As critics draw comparisons to the demise of the 2021 DeSo app BitCloud, Friend.tech’s fate is in doubt.
There is still a lot to see on whether the platform can navigate the turbulent waters, re-calibrate its strategies, and reclaim the trust of its community, acting as a humbling reminder of the volatility inherent in the decentralized landscape.
Conclusion
Friend.tech‘s growth and fall highlight the importance of careful deliberation, transparency, and attention in a world defined by innovation and unpredictability as decentralized platforms continue to transform the digital landscape.
