In Brief
- Friend.Tech, a decentralized social media platform, witnessed a $3 million surge in trading volume over the past 24 hours.
- Social media users are debating whether the company operates as a Ponzi scheme or maintains an unsustainable business model.
- In August, Friend.Tech faced a public relations setback when rumors emerged that it had exposed the social identities of 101,000 users.
Despite experiencing a confidence crisis due to a data leak, Friend.Tech, a social media crypto trading platform, has witnessed a surge in user activity. Data from Dune, a decentralized finance (DeFi) analytics platform, indicates that the total value locked (TVL) on the platform has exponentially increased to approximately $20 million.
This past Sunday, Twitter user TylerD pointed out that Friend.Tech’s trading volume surged to $12.3 million, surpassing the entire non-fungible token (NFT) volume of Ethereum (ETH), which stood at $9.15 million. Furthermore, the platform’s fee revenues have climbed from $160,000 in August to well over $2 million at the time of this report.
Can Platform Maintain Trading Volume?
According to Dune data, the increased trading volume was primarily attributed to current users, given the decline in new daily user sign-ups. Nevertheless, Friend.Tech’s cumulative user count has surged from approximately 5,000 in mid-August to 140,000 in September, coinciding with a total locked value of $20 million.
Reddit user BoomBoomTucki confidently points out that Friend.Tech’s fluctuating fee revenue and transaction volumes might indicate potential scalability, functionality, or business model challenges.
“The recent upswing in revenue could be a sign that Friend.Tech is actively learning from past missteps and implementing necessary changes. It remains to be seen whether the platform can maintain its current momentum and truly redefine blockchain-based social networking.”
In agreement, another user named raymv1987 anticipates more fluctuations in the near future, stating, “Just wait for about 2 weeks; it’s likely to dip again.”
Meanwhile, some users have raised concerns likening the platform to a Ponzi scheme.
Friend.Tech User Data Controversy
Friend.Tech, a cutting-edge social media application built on Coinbase’s Base blockchain, offers users a unique opportunity to connect with influencers through the use of shares, represented as keys. Notably, this innovative platform allows influencers to actively participate in its revenue generation by sharing a portion of the proceeds obtained from key purchases.
While other decentralized social media apps like Damus and Mastodon exist in the market, Friend.Tech stands out as the pioneer in tokenizing a user’s online presence. One prominent user, TylerD, boasts ownership of 40 keys and holds membership in multiple influencer groups.
Recent speculations emerged on August 20, suggesting that Friend.Tech had de-anonymized a staggering 101,000 users by associating their social media handles with Ethereum (ETH) wallet addresses. In response to these allegations, Friend.Tech promptly refuted the claims, reaffirming its commitment to user privacy and security.