Social media crypto trading platform Friend.Tech has seen user activity skyrocket despite suffering a crisis of confidence following a data leak. Data from decentralized finance (DeFi) analytics platform Dune has shown an exponential rise in the total value locked (TVL) on the platform to roughly $20 million.
On Sunday, Twitter user TylerD noted Friend.Tech’s trading volume rose to $12.3 million, outpacing total Ethereum (ETH) non-fungible token (NFT) volumes ($9.15 million). The platform has also seen its fee revenues rise from $160,000 in August to over $2 million at press time.
Can Platform Maintain Trading Volume?
Data from Dune suggests existing users were causing the higher trading volume since the number of new daily users had been dwindling. Still, Friend.Tech’s cumulative user base has grown from about 5,000 in mid-August to 140,000 in September as total value locked surged to $20 million.
Interested in doing your own research on Friend.Tech? Read our guide on how to use DeFi data aggregator DefiLlama.
Reddit user BoomBoomTucki suggested Friend.Tech’s volatile fee revenue and transaction volumes suggest scalability, functionality, or weak business model issues.
“The recent resurgence in revenue could signify that Friend.Tech is learning from earlier mistakes and making necessary adjustments. Only time will tell if the platform can sustain its momentum and truly revolutionize blockchain-based social networking.”
Another user, raymv1987, seemed to agree, predicting more volatility ahead.
“Give it like 2 weeks. It’ll flip back down.”
Other users have suggested the platform is akin to a Ponzi scheme.
Friend.Tech User Data Controversy
Built on Coinbase’s Base blockchain, Friend.Tech is a social media app that gives users access to influencers through shares (keys). An influencer contributes to its revenue takings by sharing proceeds from key purchases.
While other decentralized social media apps exist, such as Damus and Mastodon, Friend.Tech is the first to tokenize a user’s presence. TylerD claims to own 40 keys and reportedly belongs to several influencer groups.
Learn about the concept of decentralized identity here.
On Aug. 20, rumors surfaced that the platform de-anonymized 101,000 users by linking their social media handles with ETH wallet addresses. Friend.Tech denied the allegations.
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