Decentralized social media protocol Good friend.Tech captured consideration final 12 months however has noticeably pale from the radar just lately.
CryptoSlate, utilizing Dune Analytics data 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 no less than 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 data reveals a constant adverse outflow all through this month.
Per the information, Good friend.Tech skilled constructive USD circulate solely on Jan. 16, with $313,000 coming into the platform. Nevertheless, greater than $5 million flowed out on different days, considerably dropping the overall 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 every day common of almost $1 million to a mere $50,000 within the final two days.
‘Largest 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 no less than $20 million within the platform customers’ property had been susceptible to those assaults.
Whereas efforts to handle safety considerations had been made promptly, this incident mirrored the platform’s challenges in maintaining 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 Area on different blockchain networks, together with Avalanche. DeFillama information reveals these protocols are additionally struggling for adoption and use.
Teng Yan, Head of NFT Analysis at Delphi Digital, called Good friend.Tech’s setback the “largest lowlight” of the previous 12 months. He highlighted the challenge’s potential to make crypto mainstream however criticized its workforce’s execution.
“[Friend.tech] may have been a prime client app bringing crypto mainstream. An on-chain repute layer constructed on prime of present social graphs. Nice thought however poor execution,” Yan added.
Good friend. Tech’s viral development
Good friend.Tech launched an modern method for customers to monetize their recognition within the crypto area, permitting customers to purchase and promote “keys.” These keys enabled patrons to ship personal messages to sellers.
Consequently, a number of high-profile figures, each from the cryptocurrency world and the broader leisure trade, 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 fast decline, shedding 95% of its exercise inside a month of launch. But, a revival occurred in September, with every 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.