Friend.tech, the decentralized social network, has been labeled as "dead" by critics merely weeks after its launch due to a steep decline in crucial metrics, including activity, inflows, and transaction volume.
Hyped Launch Followed by Dismal Performance
Buzzy Beta Launch on Coinbase's Layer-2 Base Fizzles Out
Friend.tech's much-anticipated beta version launch on Coinbase's layer-2 Base on August 11 generated significant buzz. In a matter of days, the platform's fees exceeded $1 million in a 24-hour period, outshining established players like Uniswap and the Bitcoin network.
Fee and Transaction Plunge
Rapid Fee Erosion and Transaction Drop Spell Trouble
Despite the initial surge in fees, Friend.tech's fortunes took a downturn. Daily fees peaked at $1.7 million on August 21 but plummeted by over 87% to approximately $215,000 by August 26 (1). Transaction volumes also experienced a stark decline, with a more than 90% drop from the peak of nearly 525,000 transactions on August 21 to just over 51,000 transactions on August 27 (2).
Platform's Unique Offering and Users
Platform Focus on 'Keys' and Attraction of Influencers
Friend.tech operates around the concept of buying and selling "keys," allowing users to send private messages to one another. The platform garners a 5% fee from each transaction. Renowned figures from both the crypto and non-crypto realms, including UpOnly podcast host Cobie, YouTuber Faze Banks, and Russian protest group Pussy Riot, have become associated with Friend.tech.
Fading Enthusiasm and Negative Sentiments
Community Members Predicted Downfall
Before the recent downturn, some members of the Friend.tech community had already expressed bearish sentiments about the platform's future. The declining metrics, such as fees, transaction volumes, and user engagement, have reinforced negative projections.