Friend.tech Surges with $12 Million in Daily Trading Volume Despite Trust Concerns
Date: 2023-09-11 Author: Dima Zakharov Categories: BLOCKCHAIN
In the fast-paced world of cryptocurrencies, Friend.tech has recently made headlines by achieving a remarkable milestone: a daily trading volume of $12 million. This achievement comes in the wake of trust issues, raising questions about the platform's legitimacy. In this article, we will delve into the latest developments surrounding Friend.tech, shedding light on its recent surge in trading activity and the concerns it faces within the crypto community.
Friend.tech's Meteoric Rise:
Despite facing a credibility crisis fueled by rumors of user data leaks, Friend.tech has experienced a surge in activity. According to data from the analytics platform Dune, the Total Value Locked (TVL) on the platform has soared to $20 million, with daily trading volumes exceeding $12 million. Furthermore, the platform's commission-based revenue has skyrocketed from $160,000 in August to over $2 million at the time of this writing.
Friend.tech's user base has also seen significant growth, climbing from approximately 5,000 accounts in mid-August to an impressive 140,000 in September. This growth is predominantly attributed to existing users, as the daily new registrations had been on the decline.
Challenges and Skepticism:
While the recent revenue uptick might signal that Friend.tech is learning from past mistakes and making necessary adjustments, some crypto enthusiasts remain skeptical. Reddit user BoomBoomTucki raised concerns about the platform's scalability, functionality, and business model.
"Recent revenue growth could mean that Friend.tech is learning from its past mistakes and making necessary corrections. Only time will tell if the platform can maintain its momentum and truly revolutionize blockchain-based social networks," BoomBoomTucki noted.
Trust Issues Loom:
Friend.tech is a decentralized social application built on the Base blockchain and integrated with X (formerly known as "Twitter"). It allows users to monetize their popularity through tokenized "shares" and earn a small percentage from trading transactions involving these shares. However, some members of the crypto community have drawn parallels between Friend.tech and classic Ponzi schemes.
"I constantly read that Friend.tech earns 5% from each transaction. Explain to me why it's not 95%? Perhaps I don't fully understand, but when someone sells a key, they don't buy it from another person. It gets minted. A new key. 5% goes to the influencer or content creator. FT presumably takes the remaining 90%, right?" questioned Scott Melker.
Additionally, Friend.tech requires a small deposit for access to all platform features. While it offers a genuine social interaction support service, its monetization system seems geared toward attracting new users.
