From SocialFi Hype to a Significant Decline
In the midst of the social finance frenzy, platforms like Friend.tech generated excitement among crypto enthusiasts. Friend.tech, a decentralized network powered by social tokens, allowed users to buy and sell “keys” to initiate conversations, leveraging their social influence. By August 21, 2023, Friend.tech had an impressive 1.51 million transactions and earned $840K in revenue within 24 hours.
However, as October 2023 came to a close, Friend.tech experienced a drastic decline. Daily transactions fluctuated between 250,000 and 500,000 in mid-September but plummeted by nearly 90% afterward. The platform’s revenue also suffered, dropping from a peak of $1.14 million to under $60,000 by February 3, 2024. The total value locked (TVL) in Friend.tech decreased from $52 million to $28.33 million.
A Steep Fall in Popularity
Mentions of Friend.tech on social media platforms became scarce, except for discussions about its rapid decline. Haseeb Qureshi, managing partner at crypto venture fund Dragonfly, expressed his disappointment, stating that Friend.tech went from a crypto darling to abandonment in just four months. Another platform, Post.tech, which mimics the Arbitrum blockchain, also experienced a similar decline in activity.
Declining Interest in Friend.tech
Google Trends data reflects the declining interest in Friend.tech since late August. The search term “Friend.tech” peaked with a score of 100 during the week of August 20-26, 2023, but now remains at a mere 3 out of 100. Despite this decrease, the top five regions showing curiosity about the socialfi platform are China, Nigeria, Singapore, Switzerland, and Portugal.
Hot Take: The Fall of Friend.tech – Lessons Learned
Friend.tech’s decline serves as a cautionary tale in the world of social finance. While it initially generated excitement, the platform ultimately failed to sustain user engagement and revenue growth. This highlights the importance of continuous innovation, adaptability, and addressing user needs in the rapidly evolving crypto market. Platforms in the socialfi space must learn from Friend.tech’s downfall and focus on building long-term value to avoid facing a similar fate. The crypto industry is relentless, and success requires staying ahead of the curve and anticipating market trends.
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