Crypto News– The emergence of SocialFi applications, notably exemplified by Friend.Tech, has been a noteworthy development amid the crypto bear market. These platforms aim to revolutionize social networking by integrating blockchain technology, promising enhanced transparency and user control.
However, recent data unveils a substantial decline in new daily users for Friend.Tech, prompting concerns regarding the sustainability of this innovative business model. Initially, Friend.Tech, a prominent player in the SocialFi sector, experienced an unprecedented surge in its user base during the early stages of the crypto bear market. The appeal of decentralized social platforms resonated with users weary of the drawbacks associated with traditional social media.
The Rise of Friend Tech and Similar SocialFi Apps Defies the Crypto Bear Market
Yet, financial motivations played a significant role. Early adopters engaged in a frenzy, trading keys (essentially shares of a user) to capitalize on the platform’s potential financial gains. A user humorously remarked, “Biggest takeaway from Friend Tech so far: Using tokens that give you access to crypto gigabrains, celebrities, and attractive women as a medium for speculation is a lot more fun than doing the same with tokens that give you access to discords with angry 30-year-old unemployed men.”
This paradox of stable Total Value Locked (TVL) and diminishing user growth is not exclusive to Friend.Tech but represents a broader trend observed across the SocialFi space. Competitors such as Hive, Steemit, and Minds have encountered similar patterns.