Decentralized social media protocol Good friend.Tech attracted consideration final 12 months, however has noticeably fallen off the radar these days.
CryptoSlateutilizing Dune Analytics facts compiled by 21.co, found a worrying development: the platform’s lack of ability to draw new customers, mixed with indifference of its present consumer base. On January 28, the platform gathered simply 19 new customers concerned in no less than one transaction, a stark distinction from the height of greater than 70,000 customers in September.
A particular one dashboard from Cryptokoryo sheds gentle on the extent of the recession. On the identical date, Good friend.Tech recorded simply 5,544 transactions, marking a staggering 99% drop from its peak quantity of almost 540,000.
Which contributes to the downward spiral, DeFillama’s facts reveals a constant adverse outflow throughout this month.
In accordance with the information, Good friend.Tech didn’t expertise constructive USD flows till January 16, when $313,000 entered the platform. Nonetheless, on different days, greater than $5 million flowed out, considerably lowering 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: from a day by day common of just about $1 million to only $50,000 within the final two days.
‘Largest lowlight’
A number of causes may be attributed to Good friend.Tech’s declining numbers. Nonetheless, the issues began when a number of customers began experiencing SIM swap assaults as a result of platform’s lax safety. CryptoSlate reported that no less than $20 million in platform consumer property have been weak to those assaults.
Whereas efforts have been made shortly to handle safety considerations, this incident mirrored the platform’s challenges in maintaining with bug fixes and implementing important insurance policies for its quickly rising consumer base.
The platform’s viral success additionally spawned copycats corresponding to Stars Area on different blockchain networks, together with Avalanche. DeFillama information reveals that these protocols additionally battle with adoption and use.
Teng Yan, head of NFT analysis at Delphi Digital, called Good friend.Tech’s setback was the “greatest low level” of the previous 12 months. He highlighted the venture’s potential to make crypto mainstream, however criticized the staff’s execution.
“[Friend.tech] may have been a prime shopper app that might take crypto mainstream. An on-chain repute layer constructed on prime of present social graphs. Nice thought, however poor execution,” Yan added.
Good friend. The viral development of know-how
Good friend.Tech launched an revolutionary means for customers to monetize their recognition within the crypto area, permitting customers to purchase and promote ‘keys’. These keys allowed patrons to ship non-public messages to sellers.
Consequently, a number of high-profile figures, each from the cryptocurrency world and the broader leisure business, used Good friend.Tech to attach with their neighborhood, and the platform powered transactions on Base, the layer2 community it was constructed on.
Regardless of this preliminary success, the blockchain-based social community confronted a fast decline, dropping 95% of its exercise inside a month of launch. Nonetheless, there was a rebound in September, with day by day buying and selling volumes approaching $10 million. At its peak, the protocol had a TVL of over 30,000 ETH ($50 million), outperforming giants like Uniswap and the Bitcoin community by way of charges generated.