Demise of Friend.tech: Critics Pronounce Platform 'Dead' Amid Plummeting Metrics

Friend.tech, the decentralized social network, has been labeled as "dead" by critics merely weeks after its launch due to a steep decline in crucial metrics, including activity, inflows, and transaction volume.

Hyped Launch Followed by Dismal Performance

Buzzy Beta Launch on Coinbase's Layer-2 Base Fizzles Out

Friend.tech's much-anticipated beta version launch on Coinbase's layer-2 Base on August 11 generated significant buzz. In a matter of days, the platform's fees exceeded $1 million in a 24-hour period, outshining established players like Uniswap and the Bitcoin network.

Fee and Transaction Plunge

Rapid Fee Erosion and Transaction Drop Spell Trouble

Despite the initial surge in fees, Friend.tech's fortunes took a downturn. Daily fees peaked at $1.7 million on August 21 but plummeted by over 87% to approximately $215,000 by August 26 (1). Transaction volumes also experienced a stark decline, with a more than 90% drop from the peak of nearly 525,000 transactions on August 21 to just over 51,000 transactions on August 27 (2).

Platform's Unique Offering and Users

Platform Focus on 'Keys' and Attraction of Influencers

Friend.tech operates around the concept of buying and selling "keys," allowing users to send private messages to one another. The platform garners a 5% fee from each transaction. Renowned figures from both the crypto and non-crypto realms, including UpOnly podcast host Cobie, YouTuber Faze Banks, and Russian protest group Pussy Riot, have become associated with Friend.tech.

Fading Enthusiasm and Negative Sentiments

Community Members Predicted Downfall

Before the recent downturn, some members of the Friend.tech community had already expressed bearish sentiments about the platform's future. The declining metrics, such as fees, transaction volumes, and user engagement, have reinforced negative projections.