Decentralized social media protocol Good friend.Tech captured consideration final yr however has noticeably light from the radar lately.
CryptoSlate, utilizing Dune Analytics knowledge compiled by 21.co, found a regarding development – the platform’s failure to draw new customers, coupled with indifference from its present consumer base. On Jan. 28, the platform garnered a mere 19 new customers engaged in a minimum of one transaction, a stark distinction to its peak of over 70,000 customers in September.
A separate dashboard by Cryptokoryo sheds gentle on the extent of the downturn. On the identical date, Good friend.Tech recorded solely 5,544 transactions, signaling a staggering 99% lower from its peak quantity of virtually 540,000.
Including to the downward spiral, DeFillama’s knowledge reveals a constant unfavourable outflow all through this month.
Per the information, Good friend.Tech skilled optimistic USD circulation solely on Jan. 16, with $313,000 getting into the platform. Nevertheless, greater than $5 million flowed out on different days, considerably dropping the whole worth of property locked on the platform to $30 million.
Furthermore, this decline is additional mirrored within the charges generated by the community, plummeting from a each day common of practically $1 million to a mere $50,000 within the final two days.
‘Greatest lowlight’
A number of causes may very well be blamed for Good friend.Tech’s falling numbers. Nevertheless, points started when a number of customers suffered sim-swap assaults because of the platform’s lax safety. CryptoSlate reported that a minimum of $20 million within the platform customers’ property had been weak to those assaults.
Whereas efforts to handle safety issues had been made promptly, this incident mirrored the platform’s challenges in protecting tempo with bug fixes and implementing important insurance policies for its quickly increasing consumer base.
The platform’s viral success additionally spawned copycats like Stars Enviornment on different blockchain networks, together with Avalanche. DeFillama knowledge exhibits these protocols are additionally struggling for adoption and use.
Teng Yan, Head of NFT Analysis at Delphi Digital, known as Good friend.Tech’s setback the “largest lowlight” of the previous yr. He highlighted the undertaking’s potential to make crypto mainstream however criticized its crew’s execution.
“[Friend.tech] might have been a prime shopper app bringing crypto mainstream. An on-chain status layer constructed on prime of present social graphs. Nice concept however poor execution,” Yan added.
Good friend. Tech’s viral progress
Good friend.Tech launched an modern method for customers to monetize their reputation within the crypto house, permitting customers to purchase and promote “keys.” These keys enabled patrons to ship non-public messages to sellers.
In consequence, a number of high-profile figures, each from the cryptocurrency world and the broader leisure business, used Good friend.Tech to hook up with their neighborhood, and the platform was driving transactions on Base, the layer2 community it was constructed on.
Regardless of this preliminary success, the blockchain-based social community confronted a fast decline, shedding 95% of its exercise inside a month of launch. But, a revival occurred in September, with each day buying and selling volumes nearing $10 million. At its peak, the protocol boasted a TVL exceeding 30,000 ETH ($50 million), outperforming giants like Uniswap and the Bitcoin community in charges generated.
