Friend.tech is in massive trouble after the crypto community turned on them due to a decision they made not long ago. Apparently, this decentralized social media app is feeling the heat after many of its users started leaving. But away from the conundrum, let's take a rundown on this crypto-related project, previously termed revolutionary.
Friend.tech is a unique social media application that leverages the metrics of blockchain and crypto industries. The platform enables users to trade their profiles in the form of shares and potentially earn a profit. However, the project's main highlight is not limited to this feature alone, as any crypto project can claim to offer similar functionality.
The crypto social app made a grand entry into the crypto scene with its impressive growth. It quickly gained popularity among top crypto traders and investors. At one point, it was only second to Ethereum in terms of fees generated, having generated over $1 million in fees in a single day. However, things have taken a turn for the worse. The decentralized social media platform has lost its glory and the team behind the Friend.tech app has made things worse by threatening to ban users who try to use another social media platform that is similar to theirs.
In their announcement, Friend.tech said, "To make sure loyal users are rewarded fairly during our beta, users moving to forks and copies will automatically opt out of earning Points and forfeit existing points."
Criticism Ravage Friend.tech App
Immediately after they made this announcement, the crypto community descended on them, pointing out the anti-competition stance the project is taking. The crypto and web3 space is supposed to be a place where users can contribute to different projects. Furthermore, anyone within the crypto community has the chance to create their own project, even if it's similar in utility.
The act of marginalizing or banning users from earning on the Friend.tech app contradicts the principles of the crypto industry. Although no direct mention was made of competitors in their statement, it was clear that the company was referring to other apps that function similarly to theirs. Despite having a significant number of users, Friend.tech still faces competition from other apps, and many users are switching over. This is why the company made the announcement.
The pseudonymous founder of friend.tech, known as “Racer,” apologized on behalf of Friend.tech app. He said the decision from the team wasn't well thought out, and they took back whatever meaning it might have presented. Apparently, this new controversy from this decentralized social media platform comes less than 3 weeks after the launch of this project on the 11th of August.
Friend.tech Activity Hits New Lows
After the hype, Friend.tech is close to being almost square one after around two weeks of taking the industry by storm. Information from Dune Analytics shows that the transaction numbers on Friend.tech plummeted over 90% from their peak of nearly 525,000 to less than 50,000.
Due to the loss in transaction volumes, the fees generated from this platform have been reduced drastically. Previously, this platform had more than $1 million in fees generated in 24 hours. It has reduced to less than $150,000.