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Friend.Tech Trading Volume Rises to $12 Million in One Day, but Is It Sustainable?

2 mins
Updated by Geraint Price
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In Brief

  • Decentralized social media platform Friend.Tech has seen its trading volume surge by $3 million in the last 24 hours.
  • Some users on social media argue the company is either a Ponzi scheme or has an unsustainable business model.
  • Friend.Tech suffered PR damage after rumors surface in August it leaked the social identities of 101,000 users.
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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.”

Friend.Tech Social Media Platform Fee Revenue
Friend. Tech’s fee trend has varied dramatically | Source: Dune

Another user, raymv1987, seemed to agree, predicting more volatility ahead.

“Give it like 2 weeks. It’ll flip back down.” 

Friend.Tech Social Media Trading Volume
Trading volume and number of traders has also fluctuated | Source: Dune

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.

Got something to say about the surge in trading volume on the social media platform Friend.Tech or anything else? Please write to us or join the discussion on our Telegram channel. You can also catch us on TikTokFacebook, or X (Twitter).

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David Thomas
David Thomas graduated from the University of Kwa-Zulu Natal in Durban, South Africa, with an Honors degree in electronic engineering. He worked as an engineer for eight years, developing software for industrial processes at South African automation specialist Autotronix (Pty) Ltd., mining control systems for AngloGold Ashanti, and consumer products at Inhep Digital Security, a domestic security company wholly owned by Swedish conglomerate Assa Abloy. He has experience writing software in C,...
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