Friend.tech had a good start and a great middle, but the innovative DeSo platform is facing a decline.
Friend.tech, a decentralized social network, already saw a drop in metrics, such as activity, fees and revenue, only a few weeks into the launch.
According to the stats from DefiLlama, as of August 27th, fees on the protocol amount to little more than $160,000. Revenue reached around $80,000. This is comparable to $1.68m in fees and $840,000 in revenue that was recorded for August 21st.
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Reportedly, there was a 90% decline in transactions on Friend.tech, falling from a peak of nearly ​​525,000 on August 21st to 51,000 transactions on the 27th. As of August 28, the protocol had about 125,000 all-time buyer addresses, with a total volume of 52,504.6 ETH.
The working principle behind Friend.tech is to connect creators and influencer and their audiences. It was launched on August 10th, allowing creators to personalize the way they interact with audiences.
Creators can organize private chat rooms where people can stake their crypto to unlock new content. The content can be accessed with keys (previously called shares), and the price of keys fluctuates based on supply and demand. Reportedly, the platform takes a 5% cut from sales.
The current situation echoes the criticism that was expressed during the sudden rise on August 21st. Some argued that the system of buying and reselling keys is an unsustainable model.
Friend.tech also had a bit of a scare related to a possible security breach concerning the connection between public wallet addresses and public Twitter usernames of more than 100,000 users.
Friend.tech was built on the Base network, which was launched by Coinbase.
