Friend.tech, a social finance platform, is making efforts to rejuvenate user engagement by releasing a teaser trailer for its second version. Despite the initial hype, the DeFi application has seen a decline in user activity, transactions, and fees. On December 19, Friend.tech unveiled a K-pop song as part of its V2 trailer.
— friend.tech (@friendtech) December 19, 2023
The trailer, characterized by a song with a blue hue, concluded with a hint of Friend.Tech v2 is slated for release in spring 2024. However, it did not provide any additional details about the features of the upcoming version. The platform has experienced a significant drop in activity since its peak in mid-September.
Friend.tech Numbers are All in Red, According to Recent Reports
According to Dune Analytics, the number of daily transactions on Friend.tech recently reached a new low, with only 2,351 transactions recorded on December 17. Furthermore, the transaction volume has plummeted by 99% from its peak of over 530,000 on September 13 to the current levels. The protocol inflow has also seen a drastic reduction, falling from $20 million in mid-September to a mere $320,000 on December 18.
The protocol fees chart mirrors this trend, with a decrease of over 98% from $1 million to just $16,000 during the same period. The number of active buyers and sellers of social media profiles has also decreased correspondingly. While there were more than 40,000 active buyers in October, the number has now shrunk to just 317.
In addition, the platform has been beset by fraudulent activities and bot operations, which are likely discouraging new users. Back in early October, numerous users reported a series of attacks that involved phishing and SIM swapping. Fraudsters obtained personal details, including phone numbers, from Friend.tech users on X.
These details were exploited to empty wallets due to the inadequate security measures safeguarding account information on X. Friend.tech is a SocialFi application that was developed on Base and introduced in August. It enables users to connect their X profiles with the app and a wallet address to earn revenue through engagement.