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Is Friend.tech dead? On-chain numbers support protocols' demise

 

By Nerly Shammah Sep 04, 2023

 

Money is not an unlimited resource, if it isn't buying value, it's counting losses and will eventually run out.

 

 

The economic model of Friend.tech has been widely discussed as unsustainable and publicly predicted to collapse.

 

In reality, Friend.tech rewired the design of subscription monetization models under the shades of tokenization and access economy thereby effectively marketing this product as a web3 application. 

 

Friend.tech, a supposedly decentralized social application was simply based on tokenized subscriptions which was predictably always going to be a losing game for buyers(retail investors) regardless of the effects crypto has on reimagined traditional finance structures, the fact remains that if money isn't backed by value structures, it would soon be counted for losses. 

 

The value in-flow experienced on Friend.tech was primarily feeding the protocol and its creators, leaving no room for backflow of value to investors in what the protocol formally called "shares" and later changed to "keys", a typical "access token" that enables creators to "gate-keep" their inbox(chatrooms) to only buyers of their keys to be able to interact with them. 

 

Numbers don't lie and on-chain statistics reveal Friend.tech may be running downhill on what looks to be one of the shortest-lived crypto projects. 

 

Is Friend.tech Dead? 

 

Friend.tech is presumably dead following a sharp decline in user transactions and trading volumes leading to negative economic outturns. 

 

The supposedly decentralized social network has amassed popularity within 24 hours of launch and in subsequent days has quickly met its demise as the protocol trading volume dumps from a peak of $16 million on August 21, 2023, to just $565.804k at the time of writing.

 

Friend.tech has had over $90 million in-flow since launch with over $4.5 million in protocol fees. It is important to note that transactions on the new shiny supposedly "web3 social media platform" have experienced a drastic drop in on-chain activities.

 

With a peaked transaction count of 524,929 down to just 13,663 at press time. The significant shift of on-chain data points to a potential demise of the newer launched and popular blockchain-based social network.

 

Community predicts the death of Friend.tech early on

 

According to an August 21 report on Cointelegraph, numerous individuals have previously predicted, the quick passing on of Friend.tech, with many pointing to its flawed economic structures designed for short-term gains but long-term disasters. 

 

The Ethereum-based social network, primarily hosted on the new and buzzing layer 2 solutions of the network "coinbases' BASE network", has been criticized by numerous personalities within the cryptocurrency ecosystem despite having attracted some good names outside the space.

 

Yazan, a known crypto commentator pointed out the pricing flaws of the protocol that could be easily taken advantage of and the broken structures of group chats and its ridiculous gateways mining creators easy money.

 

Yazan also reportedly believed the app had been running for about six and eight weeks before both share prices and general activity began to nosedive.

 

In addition,  an X user by the name of Legendary_NFT compiled an analysis and comparison between Friend.tech and BitClout - a predecessor DeSo app from 2021 as noted by Cointelegraph.

 

Conclusively, Lengendary_NFT predicted Friend.tech to take a similar path to death as Bitclout did.

 

"

 

I think the platform will collapse as BitClout did. We are in a bear market, and there’s nothing to do. Everyone jumps on an opportunity to make money, but I think the platform will be done within the next weeks to months.

 

"

 

Realities are not shaping up so well for the newly popular decentralized social application as marketed as early buyers flip shares for profits and numbers unsustainably climb through disastrous roof holes, pre-made by flawed economic designs.