Following its inception just over two weeks ago, the Friend.tech platform has seen dramatic declines in buyers, sellers, inflows, and transactions, leading some detractors to predict its demise.
Less than three weeks after its debut, critics have already dubbed the decentralized social network Friend.tech “dead” due to a sudden decline in important indicators including activity, inflows, and volume.
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On August 11, Friend.tech’s buzzy beta version was released on Coinbase’s layer-2 Base. A week later, on August 19, it outperformed Uniswap and the Bitcoin network with fees that exceeded $1 million in a single day.
But since then, its prices have plummeted. According to DefiLlama, daily fees peaked on August 21 at $1.7 million before falling over 87% to about $215,000 on August 26.
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According to Dune Analytics statistics compiled by Crypto Koryo, transactions on Friend.tech likewise decreased over 90% from their peak of over 525,000 on August 21 to just over 51,000 on August 27. This led many users on X (Twitter) to post condolences for the network.
With the platform allegedly taking a 5% cut, Friend.tech is centered on the purchase and selling of “keys” that allow the buyer to send the seller private messages.
Influencers from the crypto and non-crypto world have been drawn to it, such as UpOnly podcast presenter Cobie, YouTuber Faze Banks, and the Russian protest group Pussy Riot.
Coinbase Payments Risk Manager Lisandro Rodriguez stated in an Aug. 27 X post that the platform is “dead” as a result of “greed and poor execution.”
Along with the fee reduction, the number of buyers and sellers has plummeted as well. According to Dune statistics, on August 27, there were only 10,000 buyers and 7,800 sellers, down from the peak of over 58,000 buyers and 27,000 sellers on August 21.
Some community members had already revealed their gloomy expectations for the platform prior to the fall during the past week.
Yazan, a crypto critic, told Cointelegraph last week that he believed Friend.tech had six to eight weeks before user key prices and activity would start to fall.
Yazan said that the price hikes for user keys were unjustifiable and questioned why so many people would spend more than 1 Ether
The platform has been compared to the DeSo software BitCloud from 2021, and Web3 marketer Legendary, who goes by the moniker Friend.tech, predicts that it “will collapse as BitClout did.”
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