Friend.Tech, a Web3 social app that allows users to buy and sell access to influencers and creators, has seen a dramatic decline in its network activity and revenue since its launch in August.
Friend.Tech Failed to Find Its Niche
The app, which was built on Base, a Coinbase-backed optimistic rollup, tokenizes users’ social profiles and creates private chat rooms that can be entered by purchasing “keys” on a bonding curve. The app claims to offer a new way of monetizing personal brands and gaining exclusive insights from industry experts.
However, data from Dune Analytics and DeFi Llama shows that the app has lost most of its momentum and appeal in less than a month. The number of transactions on the network has dropped 96%, from 38,000 to 1,663, while the protocol inflow has fallen 90%, from $1.9 million to $89,000. The app’s daily revenue has also plummeted 99%, from $840,000 to $80,000.
The data also reveals that almost all traders have sold more keys than they have bought, indicating a preference for liquidating positions and exiting the platform. The number of active buyers has decreased from 3,315 to 361, while the number of active sellers has declined from 1,423 to 262.
The USD volume of keys bought has also sunk to $38,000 per day, from an initial peak of $1 million. The reasons for the app’s failure are not clear, but some possible factors include the lack of user retention, the high gas fees, the ethical concerns, and the legal risks associated with the app’s model.
Some critics have also questioned the app’s value proposition and sustainability, as well as its potential for abuse and manipulation. Friend.Tech’s demise raises doubts about the viability and desirability of Web3 social apps that aim to disrupt the traditional social media landscape. It also serves as a cautionary tale for investors and users who are eager to jump on the latest crypto hype.
