Friend.tech: Decentralized App Faces Major Setback in Trading Activity

Friend.tech’s Trading Activity Crashes by 94% After Initial Surge

Friend.tech, a decentralized social media app, experienced explosive growth in its trading fees but has now seen a significant decrease in activity. Here are the key points:

Friend.tech saw its trading fees rival top cryptocurrencies like Bitcoin and Tron just two weeks after its launch.
However, trading volume and fees on the platform have plummeted by 94%.
Concerns about the long-term viability of Friend.tech’s model have proven to be accurate.
The platform allowed users to buy and sell shares of influential accounts and social media profiles.
Initially, over 35,000 users and 4,400 ETH ($8.1 million) in trading volume were recorded.

Friend.tech’s Decline and Business Model

Friend.tech’s revenue heavily relied on a 10% fee charged for every buy and sell of shares. However, trading fees have now decreased to $160,000 in the past 24 hours. Additionally:

Friend.tech surpassed Bitcoin in terms of trading fees, generating almost $1.4 million in revenue at its peak.
Data from DeFiLlama shows a significant drop in trading fees and revenue.
The platform incorporated Maximal Extractable Value (MEV) bots, which discouraged content creators and users.

The Challenges of Decentralized Social Media

Decentralized social media platforms face numerous obstacles in gaining mainstream adoption. These challenges include expanding the user base. Here’s what you need to know:

Decentralized social media is considered the future of the internet.
Friend.tech currently has a Total Value Locked (TVL) of $6.4 million and has generated over $7.8 million in fees.
However, critics compare the imminent failure of Friend.tech to that of BitClout, another decentralized social media app.

Hot Take

Friend.tech’s rapid rise and subsequent decline highlight the challenges faced by decentralized social media platforms. The reliance on trading fees and the incorporation of MEV bots may have contributed to the platform’s downfall. To achieve the promise of decentralized social media, these platforms need to overcome these challenges and disrupt the status quo.