Friend.tech has found itself in dire straits, prompting critics to pronounce its premature demise. The social media platform, which initially garnered attention for its explosive growth, has been hit hard by a sharp decline in crucial metrics, leaving many to question its viability in an increasingly competitive landscape.
The swift rise and fall of Friend.tech is not just a tale of fleeting success, but also sheds light on the challenges faced by decentralized networks in the realm of cryptocurrencies.
Friend.tech Early Triumphs Masked By Escalating Woes
Friend.tech embarked on its journey with a buzz-worthy beta version launch on Coinbase’s layer-2 Base on August 11. Just a week later, the platform was making waves as its transaction fees surged past the million-dollar mark in just only 24 hours, surpassing established players like Uniswap and even the Bitcoin network. The euphoria, however, was short-lived.
In the wake of its initial success, Friend.tech’s fortunes began to crumble. Daily transaction fees, which had reached a peak of $1.7 million on August 21st, plummeted by more than 87%, dwindling to a mere $215,000 by August 26th, as reported by DefiLlama.
The decline was mirrored in transaction volumes, with numbers dropping over 90%, from a high of nearly 525,000 transactions on August 21 to slightly more than 51,000 on August 27, data compiled by Crypto Koryo using Dune Analytics, shows.
Friend.tech daily transaction fees and revenue. Source: Defillama
Bots: From Boon To Bane
The very bots that had once driven Friend.tech’s transaction frenzy are now being held responsible for its downfall, according to Tom Wan of 21.co. These automated trading bots, according to a Bloomberg report, are designed to exploit rapid price movements, which have been manipulating the order of transactions.
This nefarious practice has enabled the bots to preempt influencer-initiated transactions, purchasing assets at rock-bottom prices before creators have a chance, forcing them to acquire their own assets at inflated rates. Such manipulation has inevitably discouraged content creators and users, casting a shadow over the platform’s future.
Bitcoin drops to the $25K level today. Chart: TradingView.com
Friend.tech’s trajectory, once hailed as a triumph in the world of decentralized social networks, now stands as a cautionary tale of the challenges facing emerging crypto platforms. As critics draw parallels to the demise of the 2021 DeSo app BitCloud, the fate of Friend.tech hangs in the balance.
Whether the platform can navigate the stormy waters, recalibrate its strategies, and regain the trust of its community remains to be seen, serving as a stark reminder of the volatility inherent in the decentralized landscape.
In a space defined by innovation and unpredictability, Friend.tech’s rise and fall underscores the need for careful consideration, transparency, and vigilance as decentralized platforms continue to reshape the digital landscape.
Featured image from Freepik