Decentralized social media protocol Good friend.Tech captured consideration final yr however has noticeably light from the radar just 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 person base. On Jan. 28, the platform garnered a mere 19 new customers engaged in at the very least one transaction, a stark distinction to its peak of over 70,000 customers in September.
A separate dashboard by Cryptokoryo sheds mild 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 damaging outflow all through this month.
Per the info, Good friend.Tech skilled optimistic USD movement solely on Jan. 16, with $313,000 getting into the platform. Nevertheless, greater than $5 million flowed out on different days, considerably dropping the full 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 day by day common of practically $1 million to a mere $50,000 within the final two days.
‘Greatest lowlight’
A number of causes might be blamed for Good friend.Tech’s falling numbers. Nevertheless, points started when a number of customers suffered sim-swap assaults as a result of platform’s lax safety. CryptoSlate reported that at the very least $20 million within the platform customers’ property had been susceptible to those assaults.
Whereas efforts to deal with safety considerations had been made promptly, this incident mirrored the platform’s challenges in retaining tempo with bug fixes and implementing important insurance policies for its quickly increasing person base.
The platform’s viral success additionally spawned copycats like Stars Enviornment on different blockchain networks, together with Avalanche. DeFillama knowledge reveals these protocols are additionally struggling for adoption and use.
Teng Yan, Head of NFT Analysis at Delphi Digital, referred to as Good friend.Tech’s setback the “greatest 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 thought however poor execution,” Yan added.
Good friend. Tech’s viral progress
Good friend.Tech launched an progressive means for customers to monetize their reputation within the crypto area, permitting customers to purchase and promote “keys.” These keys enabled patrons to ship personal 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 connect with their group, 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 speedy decline, shedding 95% of its exercise inside a month of launch. But, a revival occurred in September, with day by 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.
