Friend.tech has been declared dead by critics nearly three weeks after its launch following a major drop in overall activity, inflows, and volume. The platform was subject to a highly turbulent beta launch on Coinbase’s Layer 2 base back on August 11 this year. A week after its launch, the overall fee of Friend.tech surpassed the $1 million mark, leaving some of its competitors like Uniswap and the Bitcoin network in the dust. However, the fee has plunged since then.
As per the data shared by DefiLlama, the daily fees managed to hit the $1.4 million mark on August 22, but the situation changed drastically as it dropped by a staggering 87% to around $215,000 by August 25. As of now, the 24-hour revenue has continued to decline and now stands at approximately $161,117. As far as transactions on Friend.tech are concerned, they also declined over 90% from almost 525,000 to just over 51,000 by August 27.
Friend.tech is mainly centered around the buying and selling of keys that enable buyers to send private messages to sellers. The payments risk manager at Coinbase, Lisandro Rodrigues, took the situation to X and highlighted that the platform is now dead, solely on the basis of greed as well as poor execution.
Friend tech is dead because of greed and poor execution. We can see that after the initial influencer pump volume has fallen off a cliff. Let's dig into how this failure came to be 👇🏾 pic.twitter.com/WDQncTQJ21
— Lisandro (@TheRealLisandro) August 27, 2023
Crypto Community Predicted the Friend.Tech Turmoil
Apart from the major decline in fees, the total numbers of both buyers and sellers have also declined considerably. However, just before the decline over the previous week, a number of crypto community members already shared their bearish predictions regarding the future of Friend.tech.
Over the course of the previous week, several cryptocurrency analysts began sharing a series of factors that led them to believe that the platform had approximately six to eight weeks before it would see a major decline in its user key prices as well as overall activity.
Some of these analysts argued that user key price increase was unsustainable and stated that charging them more than one Tether just to send private messages was absurd. Many argue that the similarities of Friend.tech with the DeSo app Bitcloud have become fairly evident. Currently, analysts believe that the newly launched platform would suffer the same fate as Bitcoud did.