Decentralized social networks have all the time confronted important challenges to achieve mainstream adoption. Such is the obvious case of Good friend.tech, a brand new decentralized app that loved explosive progress earlier this month.
Simply barely two weeks after its launch, Good friend.tech noticed its trading fees grow to rival top cryptocurrencies like Bitcoin and Tron. Nonetheless, the euphoria is beginning to subside, as exercise and buying and selling charges on the social media app have crashed by 94%.
Good friend.tech Information Large Fall In Buying and selling Exercise
Good friend.tech’s mannequin had raised considerations from some crypto buyers, with some arguing about its long-term viability. Their criticism has been confirmed to be correct because the state of affairs at Good friend.tech has began to deteriorate.
Good friend.tech permits customers to purchase and promote shares of influential accounts and social media profiles, and the platform reportedly registered over 35,000 and 4,400 ETH ($8.1 million) in buying and selling quantity in its first 24 hours.
Nonetheless, data from Dune Analytics present that buying and selling quantity has fallen since then, with lower than $200,000 in charges generated prior to now 24 hours. Buying and selling exercise has additionally been down from over 35,000 to lower than 6,000 customers. This has been mirrored in buying and selling prices, as income has decreased by greater than 94% because the trade first opened its doorways.
Friendtech patrons and sellers tanking to 0
GG Friendtech? pic.twitter.com/jmXKu41KDd
— Boxmining (@boxmining) August 28, 2023
Good friend.tech’s enterprise mannequin relied closely on charging customers a ten% price for each purchase and promote of shares. Good friend.tech surpassed Bitcoin by way of buying and selling charges, recording nearly $1.4 million in income through the peak of the platform’s buying and selling exercise. Nonetheless, information from DeFiLlama reveals that buying and selling charges are actually at $160,000 prior to now 24 hours.
Good friend tech is useless due to greed and poor execution. We will see that after the preliminary influencer pump quantity has fallen off a cliff. Let’s dig into how this failure got here to be 👇🏾 pic.twitter.com/WDQncTQJ21
— Lisandro (@TheRealLisandro) August 27, 2023
Good friend.tech additionally incorporates Maximal Extractable Worth (MEV) bots, that are automated buying and selling bots designed to use fast worth actions. Though these bots have generated over $2 million in profits, they’ve been credited with discouraging content material creators and customers.
The Plight Of Decentralized Social Media Platforms
Decentralized social media have been touted to be the way forward for the web. Nonetheless, platforms have been confronted with many challenges and have struggled to achieve a agency footing out there. One of many challenges is the enlargement of the consumer base. Overcoming these challenges might be key to disrupting the established order and reaching the promise of decentralized social media.
On the time of writing, Good friend.tech has a TVL of $6.4 million and has generated charges of over $7.8 million thus far. However whereas Good friend.tech continues to be working, critics have likened its imminent failure to the autumn of BitClout, one other decentralized social media app.
Complete market cap struggles at $1.026 trillion | Supply: Crypto Total Market Cap on Tradingview.com
Featured picture from BeInCrypto, chart from Tradingview.com