Friend.tech Witnesses Sharp Drop in Transaction Volume and Fee Revenue: Is the Platform in Trouble?
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The Decline of Friend.tech: A Decentralized Social Networking Platform
Introduction
Friend.tech, a decentralized social networking platform, has experienced a significant decrease in transaction volume and fee revenue over the past week.
Drop in Transaction Volume
According to data provided by analytics platform Dion, Friend.tech’s transaction volume plummeted to $883,000 on August 27, marking a 95% drop from its all-time high of $16.88 million on August 21.
Furthermore, in the past 24 hours, the platform’s trading volume has seen a drastic 99.99% decrease, with only $2,760 in transactions and 35 traders.
Decline in Fee Revenue
Fees generated on Friend.tech have also experienced a deep decline. According to analytics platform Dune, the decentralized social media app generated a mere $275 in fees over the past 24 hours, showing a 100% decrease compared to the $1.7 million fee generated on August 21.
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Decrease in New Users
In addition to the drop in transaction volume and fee revenue, the number of new users on Friend.tech has been continuously decreasing over the past seven days. According to Dune, only three new users joined the platform within the past day.
Cryptocurrency Community Claims Friend.tech Is ‘Dead’
In response to the significant drop in trading activity on Friend.tech, the cryptocurrency community on X (formerly Twitter) has declared the platform as “dead.” Coinbase’s Chief Risk Officer, Lisandro Rodriguez, attributed the failure to “greed and poor execution.”
Privacy Concerns
Defense attorney @DeFiDefenseLaw pointed out Friend.tech’s privacy issue, where users are unable to permanently delete their accounts. This claim was supported by another user who stated that such a practice is illegal in the United States and the European Union.
Conclusion
The decline of Friend.tech is a stark reminder of the challenges faced by decentralized social networking platforms. It highlights the importance of addressing issues such as transaction volume, fee revenue, and privacy concerns to ensure the success and sustainability of such platforms.
