Friend.tech pronounced 'dead' after activity and fees tank

Less than 3 weeks aft its launch, the decentralized societal web Friend.tech has already been declared "dead" by critics,  pursuing a caller driblet successful cardinal metrics specified arsenic activity, inflows and volume.

Friend.tech had a buzzy beta mentation motorboat connected Coinbase’s layer-2 Base connected Aug. 11. A week later, its fees surpassed $1 million successful 24 hours connected Aug. 19 outshining Uniswap and the Bitcoin network.

However, its fees person since cratered. Daily fees peaked astatine $1.7 cardinal connected Aug. 21, but dropped implicit 87% to astir $215,000 connected Aug. 26 according to DefiLlama.

Transactions connected Friend.tech besides declined implicit 90% from the astir 525,000 highest connected Aug. 21 with conscionable implicit 51,000 transactions connected Aug. 27, Dune Analytics data complied by Crypto Koryo shows, starring galore connected X (Twitter) station condolences for the network.

Friend.tech is centered connected buying and selling “keys” that alteration the purchaser to nonstop backstage messages to the seller, with the level reportedly taking a 5% cut.

It's attracted crypto and non-crypto influencers including UpOnly podcast big Cobie, YouTuber Faze Banks and Russian protestation radical Pussy Riot.

In an Aug. 27 X post, Coinbase payments hazard manager Lisandro Rodriguez opined that the level is "dead," owed chiefly to "greed and mediocre execution."

Friend tech is dormant due to the fact that of greed and mediocre execution. We tin spot that aft the archetypal influencer pump measurement has fallen disconnected a cliff. Let's excavation into however this nonaccomplishment came to beryllium pic.twitter.com/WDQncTQJ21

Alongside the interest decline, buyers and sellers person besides tanked, with Aug. 27 seeing astir 10,000 buyers and 7,800 sellers compared to the Aug. 21 highest of implicit 58,000 buyers and 27,000 sellers, per Dune data.

Friend.tech buyers (green) and sellers (orange) person some steadily declined since the highest connected Aug. 21. Source: Dune

Dune shows inflows person besides taken a dive from the Aug. 21 precocious of $16.8 cardinal with Friend.tech seeing astir $1.6 cardinal connected Aug. 27 — a astir 90.5% decrease.

Protocol inflows peaked connected Aug. 21 but person since trended down. Source: Dune

Before the diminution implicit the past week, immoderate assemblage members had already shared their bearish predictions for the platform.

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Last week, crypto commentator Yazan told Cointelegraph of factors that led him to judge Friend.tech had betwixt six to 8 weeks earlier it would spot a diminution successful idiosyncratic cardinal prices and activity.

Yazan said the idiosyncratic cardinal terms increases were unsustainable and questioned wherefore truthful galore would wage upwards of 1 Ether (ETH) “to beryllium capable to spot a backstage chat.”

The level has drawn parallels to the 2021 DeSo app BitCloud with pseudonymous Web3 marketer Legendary saying helium believes Friend.tech “will illness arsenic BitClout did.”

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