Social Media Crypto Trading Platform Sees Surge in User Activity Despite Data Leak
The social media crypto trading platform Friend.Tech has experienced a significant increase in user activity, despite facing a crisis of confidence due to a data leak. According to data from the decentralized finance (DeFi) analytics platform Dune, the total value locked (TVL) on the platform has risen to around $20 million.
Recent data shows that Friend.Tech’s trading volume has surpassed total Ethereum (ETH) non-fungible token (NFT) volumes. The platform has also witnessed a substantial increase in fee revenues. However, while existing users are contributing to the higher trading volume, the number of new daily users has been declining.
Can the Platform Sustain Trading Volume?
Dune’s data suggests that although the trading volume has increased, maintaining this level of activity may be challenging. Some Reddit users have raised concerns about the platform’s volatile fee revenue and transaction volumes, highlighting potential scalability, functionality, or weak business model issues.
Friend.Tech User Data Controversy
Friend.Tech is a social media app built on Coinbase’s Base blockchain. It allows users to access influencers through shares (keys), and influencers contribute to the platform’s revenue by sharing proceeds from key purchases. The platform faced controversy when rumors emerged that it had de-anonymized 101,000 users by linking their social media handles with ETH wallet addresses. Friend.Tech has denied these allegations.
Hot Take: Friend.Tech Faces Challenges Amidst Increasing User Activity
Despite experiencing a surge in user activity, Friend.Tech must address concerns about its trading volume sustainability, scalability, and data privacy. The platform’s exponential rise in total value locked indicates growth potential, but the decline in new daily users raises questions about its ability to attract and retain a larger user base. Friend.Tech needs to demonstrate its commitment to addressing these issues and maintaining user trust to revolutionize blockchain-based social networking successfully.
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