Friend Tech goes from viral success to virtual ghost town

Decentralized social media protocol Buddy.Tech captured consideration last year but has noticeably aged from the radar neutral lately.

CryptoSlate, the employ of Dune Analytics knowledge compiled by 21.co, found a touching on pattern – the platform’s failure to attract modern users, coupled with indifference from its gift particular person immoral. On Jan. 28, the platform garnered a mere 19 modern users engaged in a minimal of 1 transaction, a stark inequity to its high of over 70,000 users in September.

A separate dashboard by Cryptokoryo sheds light on the extent of the downturn. On the identical date, Buddy.Tech recorded handiest 5,544 transactions, signaling a staggering Ninety nine% lower from its high quantity of virtually 540,000.

Adding to the downward spiral, DeFillama’s knowledge reveals a consistent adverse outflow at some stage in this month.

Per the knowledge, Buddy.Tech experienced distinct USD plug along with the spin handiest on Jan. 16, with $313,000 entering the platform. On the opposite hand, greater than $5 million flowed out on diverse days, critically shedding the general worth of property locked on the platform to $30 million.

Moreover, this decline is extra reflected in the expenses generated by the network, plummeting from a day-to-day average of with regards to $1 million to a mere $50,000 in the last two days.

‘Most attention-grabbing lowlight’

Several reasons could well be blamed for Buddy.Tech’s falling numbers. On the opposite hand, disorders started when a number of users suffered sim-swap attacks on account of the platform’s lax security. CryptoSlate reported that a minimal of $20 million in the platform users’ property had been at threat of these attacks.

Whereas efforts to handle security considerations had been made promptly, this incident reflected the platform’s challenges in keeping tempo with bug fixes and implementing vital policies for its snappy expanding particular person immoral.

The platform’s viral success additionally spawned copycats esteem Stars Enviornment on diverse blockchain networks, including Avalanche. DeFillama knowledge reveals these protocols are additionally struggling for adoption and employ.

Teng Yan, Head of NFT Be taught at Delphi Digital, known as Buddy.Tech’s setback the “finest lowlight” of the previous year. He highlighted the project’s skill to construct crypto mainstream but criticized its crew’s execution.

“[Friend.tech] could well had been a high particular person app bringing crypto mainstream. An on-chain reputation layer built on high of gift social graphs. Good idea but miserable execution,” Yan added.

Buddy. Tech’s viral boost

Buddy.Tech launched an progressive draw for users to monetize their reputation in the crypto house, permitting users to buy and promote “keys.” These keys enabled traders to ship non-public messages to sellers.

As a consequence, a complete lot of excessive-profile figures, both from the cryptocurrency world and the broader entertainment enterprise, historical Buddy.Tech to connect to their community, and the platform became using transactions on Scandalous, the layer2 network it became built on.

No topic this preliminary success, the blockchain-essentially essentially essentially based social network faced a fast decline, shedding 95% of its job inner a month of originate. Yet, a revival occurred in September, with day-to-day trading volumes nearing $10 million. At its high, the protocol boasted a TVL exceeding 30,000 ETH ($50 million), outperforming giants esteem Uniswap and the Bitcoin network in expenses generated.