Turmoil Strikes Just Weeks After Launch

The extremely anticipated decentralized social community, Good friend.tech, has been pronounced “lifeless” by business critics three weeks after its launch.

The platform, which promised to revolutionize personal messaging via blockchain expertise, suffered a significant setback because of a big drop in total exercise, inflows, and quantity. This swift decline has left customers and consultants questioning the sustainability of its enterprise mannequin.

Good friend. Tech’s journey started with a turbulent beta launch on Coinbase’s Layer 2 base on August 11 this yr. Inside every week of its launch, the platform’s total charge surpassed a outstanding milestone, crossing the $1 million mark and surpassing rivals like Uniswap and the Bitcoin community.

Nevertheless, this early success was short-lived, because the platform confronted a subsequent charge plunge that has solid a shadow over its future.

DefiLlama information reveals that the platform’s day by day charges hit a formidable peak of $1.4 million on August 22, solely to plummet by an astonishing 87% to round $215,000 by August 25. The downward spiral continues, with the 24-hour income at a mere $161,117.

Transaction counts on Good friend.tech paints a stark image of its declining recognition. As soon as boasting nearly 525,000 transactions, the platform’s exercise has dwindled to only over 51,000 by August 27—a jaw-dropping decline of over 90%. This prompted many X (Twitter) customers to specific their condolences for the community’s demise.

RIP Friendtech

August 2023-August 2023💀 pic.twitter.com/Fb0bh23Fyo

— Beanie (@beaniemaxi) August 26, 2023

Notably, consumers and sellers have adopted an analogous trajectory, with the numbers dropping considerably from a peak of over 58,000 consumers and 27,000 sellers on August 21 to solely 10,000 consumers and seven,800 sellers by August 27.

This sharp contraction in customers has been accompanied by an nearly 90.5% discount in inflows, dropping from $16.8 million on August 21 to a mere $1.6 million on August 27.

Crypto Neighborhood’s Foreshadowing

Good friend.tech was designed as a platform centered across the shopping for and promoting keys that facilitate personal messaging between customers. It allows customers to purchase shares of their mates and influencers. These shares enable them to entry private chats with the chosen person.

Nevertheless, the fast decline has ignited skepticism in regards to the platform’s viability. Lisandro Rodrigues, the funds danger supervisor at Coinbase, highlighted the platform’s demise, attributing it to a mix of greed and poor execution. 

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

The criticisms didn’t cease with Rodrigues. The writing could have been on the wall even earlier than the latest plunge. Members of the crypto neighborhood had voiced considerations over Good friend. Tech’s sustainability and predicted a downfall in person key costs and exercise. 

Yazan, a outstanding crypto commentator, expressed skepticism in regards to the feasibility of people paying substantial sums to entry personal chats. He questioned the profitability of content material creators benefiting from group chats that reportedly malfunction, additional compounded by the platform’s limitation on direct replies to customers.

The way in which costs are set on the platform is being criticized for seeming unreasonable and having the potential for exploitation. Furthermore, there are allegations of abrupt and synthetic surges adopted by sharp declines in worth.

Let me inform you one factor.

One thing isn’t proper about @friendtech.

🚩 Creators earning profits from a bunch chat that doesn’t even work when you’ll be able to’t even reply on to individuals?

🚩 The way in which pricing works is ridiculous and will be simply taken benefit of.

🚩 Pumps and dumps. pic.twitter.com/TJqcktEM6P

— Yazan (@YazanXBT) August 20, 2023

Yazan’s sentiments had been echoed by a number of analysts who argued that the unsustainable enhance in person key costs, charging greater than a single Tether for personal messages, was basically flawed.

Parallels to BitCloud: A Grim Omen

Because the turbulence unfolded, comparisons between Good friend.tech and the DeSo app BitCloud turned extra obvious. Business insiders have voiced considerations that Good friend.tech may undergo a destiny much like Bitcloud’s eventual collapse.

This flip of occasions comes after the firm disclosed publicly on August 19 that it had secured preliminary funding from the crypto enterprise capital firm Paradigm. This led to widespread hypothesis about the potential of a future airdrop and the potential launch of tokens.

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