Friend.tech has been the buzz of the crypto market since the beginning of August. There have been positive and negative speculations going on about the app. However, critics have declared Friend.tech Dead as the decentralized social media platform crashes drastically.

Investors, speculators, and con artists have been holding out throughout this protracted bear market, hoping the next big cryptocurrency project will appear and convert their pennies into dollars.

Many believed they had discovered it in Friend.tech, a project that has gained a lot of attention in the crypto community in recent days. According to a stolen database, over 101,000 people have registered since the app’s invite-only beta test began on August 10.

What is Friend.tech?

Critics Have Declared Friend.tech Dead

Friend.tech is a mobile-based social media platform with a focus on cryptocurrencies, to put it simply. The app describes itself on its website as “the marketplace for your friends.” Friend.tech needs users to obtain an invite code from other users to sign up, much like other beta non-crypto social networking services like BlueSky.

Friend.tech gives each user access to a Telegram-like chat group. Others need to purchase shares in a user to access that user’s exclusive group conversation. They can sell those shares to other members if and when they decide to leave that group chat.

By immediately linking it to their identity and offering a premium feature—in this case, access to a private chat channel—Friend.tech is essentially automating the outdated method by which Twitter influencers would market their altcoins to their followers. It also includes all the other traditional crypto project ideas, such as a fee-sharing system and airdrops to reward users.

What Went Wrong?

However, following its inception just over two weeks ago, the Friend.tech platform has seen dramatic declines in buyers, sellers, inflows, and transactions, leading certain critics to predict its demise.

Less than three weeks after its debut, critics have already dubbed the decentralized social network Friend.tech “dead” due to a sudden decline in essential indicators, including activity, inflows, and volume.

On August 11, Friend.tech launched a beta version on Coinbase’s layer-2 Base. A week later, on August 19, it outperformed Uniswap and the Bitcoin network with fees that exceeded $1 million in a single day.

But since then, its prices have plummeted. DefiLlama said daily fees peaked on August 21 at $1.7 million before falling over 87% to about $215,000 on August 26.

Critics Have Declared Friend.tech Dead

According to Dune Analytics statistics compiled by Crypto Koryo, transactions on Friend.tech likewise decreased over 90% from their peak of over 525,000 on August 21 to just over 51,000 on August 27. This decline led many X (Twitter) users to post condolences for the network.

With the platform allegedly taking a 5% cut, Friend.tech centers on purchasing and selling “keys” that allow the buyer to send the seller private messages.

Influencers in the cryptocurrency and non-cryptosphere have shown interest, including UpOnly podcast presenter Cobie, YouTuber Faze Banks, and the Russian protest group Pussy Riot.

Critics Declare Friend.tech “Dead”

Coinbase Payments Risk Manager Lisandro Rodriguez stated in an Aug. 27 X post that the platform is “dead” due to “greed and poor execution.”

Along with the fee reduction, the number of buyers and sellers has also plummeted. According to Dune statistics, on August 27, there were only 10,000 buyers and 7,800 sellers, down from the peak of over 58,000 buyers and 27,000 sellers on August 21.

Some community members had already revealed their gloomy expectations for the platform before the fall during the past week.

Yazan, a crypto critic, told Cointelegraph last week that he believed Friend.tech had six to eight weeks before user key prices and activity would fall.

Yazan said that the price rises for user keys were unjustifiable and questioned why so many people would spend more than 1 ETH (ETH = $1,641) “to be able to see a private chat.”

Finally, we hope Friend.tech can retain its remaining buyers and sellers. But this does not look feasible based on the statistics so far.