Decentralized social networks have at all times confronted vital challenges to achieve mainstream adoption. Such is the obvious case of Good friend.tech, a brand new decentralized app that loved explosive development earlier this month.
Simply barely two weeks after its launch, Good friend.tech noticed its buying and selling charges develop to rival high cryptocurrencies like Bitcoin and Tron. Nevertheless, 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 Huge Fall In Buying and selling Exercise
Good friend.tech’s mannequin had raised issues from some crypto buyers, with some arguing about its long-term viability. Their criticism has been confirmed to be correct because the scenario 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.
Nevertheless, information from Dune Analytics present that buying and selling quantity has fallen since then, with lower than $200,000 in charges generated up 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 alternate first opened its doorways.
Friendtech consumers 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% charge for each purchase and promote of shares. Good friend.tech surpassed Bitcoin when it comes to buying and selling charges, recording nearly $1.4 million in income in the course of the peak of the platform’s buying and selling exercise. Nevertheless, information from DeFiLlama reveals that buying and selling charges at the moment are at $160,000 up to now 24 hours.
Good friend tech is lifeless due to greed and poor execution. We are able to 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 speedy value actions. Though these bots have generated over $2 million in income, 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. Nevertheless, platforms have been confronted with many challenges and have struggled to achieve a agency footing available in the market. One of many challenges is the growth of the consumer base. Overcoming these challenges will probably 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 up to now. 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.
Whole market cap struggles at $1.026 trillion | Supply: Crypto Whole Market Cap on Tradingview.com
Featured picture from BeInCrypto, chart from Tradingview.com