Friend.Tech Experiences Large ETH Exodus
Over the weekend, Friend.tech saw a massive withdrawal of over 5,000 ETH, the largest in several weeks. This exodus led to a 21% decrease in the total value locked (TVL) to 17,100 ETH or $33.6 million, the lowest since mid-September. The platform’s TVL had dropped by about 34% since early October, with no significant increase in new users since then.
There have been concerns about the platform’s security, as it has been targeted by scams such as phishing and SIM-swap attacks. The team reported removing 600,000 accounts identified as bots; however, this action has also led to genuine users being locked out. Prominent crypto influencers, including SalsaTekila and Alex Krüger, have reported being locked out of the platform and losing substantial amounts of assets.
User Lockouts Cause Discontent
Discontent among users is growing as they struggle to access their assets. The platform’s reputation has suffered a blow, prompting users to withdraw their funds, consequently decreasing the TVL by 21%. Notably, the lack of security on the platform presents a significant concern for existing and potential users.
Hot Take: Friend.Tech’s user lockouts and ETH exodus sends its TVL plummeting.
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