Friend.tech: The Rise and Fall of a Blockchain-Based Social App
Friend.tech, the latest social app for web3, has faced a rapid decline following a privacy breach and accusations of poor execution. Here are the key points:
- Friend.tech allows users to buy and sell cryptos linked to their favorite influencers on Twitter.
- The platform experienced a surge in revenue, fees, and activity after launching on Coinbase’s layer-2 Base blockchain.
- A major privacy breach exposed sensitive information of over 101,000 individuals, leading to a decline in hype and user engagement.
- Daily fees dropped by over 87%, and transactions saw a 90% decline.
- Lisandro Rodriguez, a Coinbase payments risk manager, attributed the failure of Friend.tech to greed and poor scaling strategy.
Is Friend.tech “Dead”?
Industry speculators and Twitter users have labeled Friend.tech as “dead” due to its decline in inflows and activity. The platform’s execution, accessibility, and vulnerability to trading bots have been criticized. Similar platforms like BitClout have also faced backlash and legal issues. The rise and fall of Friend.tech highlights the challenges of creating successful blockchain-based social apps.
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