Social finance platform Friend Tech is attempting to spur a revival in user engagement by dropping a teaser trailer for version 2. However, the once-hyped crypto DeSo application has slumped in terms of user activity, transactions, and fees.
The SocialFi friend tokenization dApp Friend.Tech published a K-pop song for its V2 trailer on December 19.
Friend Tech Frenzy Fades
The trailer, which was nothing more than a song with a blue tint, ended with a teaser that said Friend Tech v2, spring 2024. There were no other details of what the version upgrade would offer.
However, the real story is the collapse in activity on the platform since its peak in mid-September. The number of daily transactions on Friend Tech has recently hit new lows. There were just 2,351 transactions on December 17, according to Dune Analytics.
Moreover, the transaction figure has slumped 99% from its peak of over 530,000 on September 13 to current levels.
Protocol inflow has also crashed from $20 million in mid-September to just $320,000 on December 18. The protocol fees chart is the same, with a slump of over 98% from $1 million to just $16,000 over the same period.
The number of active buyers and sellers of social media profiles has followed suit. In October, there were more than 40,000 active buyers. Today, that number has dwindled to just 317.
Read more: How To Monetize Your Social Media Influence On Friend.tech
The dire stats are confirmed on the 21.co Dune dashboard, which reports a 28% drop in total value locked since the beginning of October.
The number of new users has also decreased from over 40,000 per day in mid-October to just 60 on December 17.
A Haven For Scammers and Bots
Moreover, the platform has been plagued with scammers and bot activity, which is likely deterring new participants.
In early October, a slew of users reported multiple attacks involving phishing and SIM swapping. Scammers accessed personal information, including phone numbers, from Friend Tech users on X (Twitter).
They used this data to drain wallets due to low-security measures protecting account information on X.
Friend Tech is a SocialFi application built on Base and launched in August allowing users to link their X profiles to the app alongside a wallet address to generate income by engagement.
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