Friend.tech created a huge buzz in the past few weeks. However, the decentralized social media platform has now seen a rapid decline in activity. So, what is Friend.tech, and is it dead? Let’s take a closer look.
TL;DR:
- Friend.tech, a decentralized social platform, lets users monetize communities using blockchain. It offers “keys” tied to social accounts, granting access to private chats and exclusive content, sparking interest for Web3 adoption.
- The platform’s rapid decline in activity, inflows, and volume within three weeks of launch is causing skepticism. Inflows plummeted by around 90.5%, while buyer, seller, and transaction numbers dropped. Privacy and regulatory concerns add to doubts about sustainability.
- Friend.tech must regain trust, redefine value, and differentiate from past platforms. Overcoming skepticism hinges on addressing issues transparently, clarifying intentions, and setting a unique course for success in the competitive decentralized social landscape.
What is Friend.tech?
On August 11th, Friend.tech launched its beta version on Coinbase’s layer-2 platform ‘Base’. Friend.tech is social token-driven platform. The platform leverages blockchain technology to empower its users. Therefore, through the platform, individuals, brands, and businesses can monetise their online communicates.
As such, Friend.tech was seen as a major catalyst for Web3 adoption. Content creators already monetise their work through apps such as Patreon and paid newsletters. However, with Friend.tech, creators can now monetise their fan base by allowing users to buy and sell ‘keys’. These keys give access to private chatrooms and exclusive content directly linked to the creator’s social media accounts, like X (Twitter). So, creators can receive private messages from fans who hold ‘keys’. Friend.tech is also invite-only, fuelling exclusivity and competition.
However, despite the initial excitement, Friend.tech is now under intense scrutiny. The platform has experienced a rapid decline, and this decline fuels earlier concerns about the platform’s viability and true intentions.
What Happened to Friend.tech?
Originally, Friend.tech appealed to crypto and non-crypto influencers, including Faze Banks and Pussy Riot. Now, in just three weeks since the launch, the platform has seen a significant drop in activity, inflows, and volume. In fact, CoinTelegraph reported a decline of nearly 90.5% in inflows – from $16.8 million on August 21st to $1.6 million on August 27th.
Additionally, it is not only the money that has declined. The number of buyers, sellers, and transactions on the platform has also plummeted, casting doubt on its sustainability. Moreover, concerns regarding privacy policy and regulatory issues have plagued Friend.tech, adding to the skepticism surrounding its true nature.
So, while the platform’s initial launch saw substantial attention and engagement, its rapid decline raises questions about its future trajectory and whether it’s a case of genuine innovation or another instance of short-term greed for quick profits. As Friend.tech navigates these challenges, it becomes crucial to address concerns, regain user trust, and redefine its value proposition to avoid the pitfalls of previous hyped platforms.
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