Friend.tech TVL Experiences Significant Decline
Friend.tech’s Total Value Locked (TVL) has recently seen a major decline, with a significant single-day drop of 7.8% in early October. This indicates a notable downturn in the network’s performance. Additionally, there have been reports of ongoing sim swap attacks, which have cast a shadow over the platform.
Massive Drop in Friend.tech TVL
Data and research analyst Tom Wan highlighted the massive drop in Friend.tech’s TVL through a tweet on October 4. According to Wan, the network experienced its most significant single-day drop, losing around 2.3K Ethereum. This decline in TVL started on October 3 and continued until October 6.
Key Redemptions Reach New Heights
Tom Wan’s thread also shed light on the redemption of keys on Friend.tech. On October 4, there was a notable surge in key redemption, reaching a new high of approximately 2.1K ETH ($3.5 million). Users who redeemed their keys chose to withdraw the funds from their accounts, resulting in no increase in idle capital within the network.
Sim Swap Attacks Blamed for TVL Decrease
The recent decrease in TVL is believed to be mainly due to ongoing sim swap attacks on Friend.tech users. These attacks have caused significant losses for some users and have led to a decrease in confidence and participation within the network.
Hot Take: Friend.tech Faces Challenges with TVL Drop and Sim Swap Attacks
Friend.tech is currently facing challenges with a substantial decline in Total Value Locked (TVL) and ongoing sim swap attacks. The platform experienced its most significant single-day drop of 7.8% in early October, indicating a downturn in performance. Additionally, there have been reports of key redemptions reaching new heights, further contributing to the decrease in TVL. Sim swap attacks have cast a shadow over the network, causing losses for some users and leading to a decrease in confidence and participation. Friend.tech will need to address these issues to regain trust and stability within its platform.
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