A blockchain-based social network, friend.tech, has experienced a sharp decline in daily transactions since its launch less than 20 days ago. The platform offers a unique approach to decentralization by allowing users to tokenize themselves and sell “shares,” now referred to as “keys,” to their fans and followers. These key holders then become shareholders and gain direct interaction with the creators.
Key Takeaway
Friend.tech, the decentralized social app that was once hyped as the next big thing, has seen a significant drop in transactions and user engagement. This decline comes after a surge in initial sign-ups from prominent crypto influencers, NBA players, and OnlyFans creators.
While some users were quick to join the platform, enticed by the promise of potential profits, others expressed reservations due to the app’s requirement of depositing funds during sign-up, lack of a clear privacy policy, and an obscure roadmap. It seems that those who exercised caution and refrained from investing heavily in others are now spared from the repercussions.
According to Dune Analytics data from user cryptokoryo, the app’s daily transaction activity has plummeted by 95% from its peak of nearly 39,000 transactions on August 21 to approximately 1,400 at the time of writing. Additionally, the inflow of funds into the platform has significantly decreased from its peak of $1.98 million on August 20 to a mere $8,300 today. However, it is worth noting that the platform has accumulated a total inflow of around $81 million, which is noteworthy considering its relative novelty.
It is not uncommon for social media platforms to experience a decline in user engagement following their initial launch. Examples such as Bluesky and Threads also garnered early traction but saw a diminished buzz in subsequent weeks and months.
