The Decline of Friend.tech
The decentralized application (dApp) Friend.tech, built on Base, was once a popular trend in the crypto space. However, it is now experiencing a decline in trading volume and overall activity, leading some Twitter users to proclaim its demise.
Main Breakdowns:
- Lisandro Rodriguez, Payments Risk Manager at Coinbase, attributes the downfall of Friend.tech to “greed and poor execution” by its team management.
- The structure of the platform, where users can purchase keys for their favorite creators, has led to fluctuations in supply and demand with every buy/sell order.
- Creators on the platform engaged in “shilling” their profiles, causing a rush of people to buy keys and resulting in winners and losers.
- The launch of bots intended to purchase new X addresses further complicated the situation, leading to the creation of numerous fake profiles.
- Access to the application is restricted, making it “clunky” and not available to everyone.
In light of these issues, Beanie, another Twitter user, expressed condolences for Friend.tech, highlighting the decline in transactions on the platform over the past week.
Hot Take:
The decline of Friend.tech can be attributed to a combination of mismanagement, market manipulation, and technical limitations. While the platform initially gained attention, its flaws and the actions of its users have contributed to its downfall. It serves as a cautionary tale for the crypto community to be wary of investing in projects with questionable management and unsustainable growth strategies.
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