Friend.Tech V2 Aims to Reinvigorate Social Platform Amid Dwindling Numbers and Scammers

• Friend.tech launched to much fanfare in August.
• It saw an almost immediate drop in activity, but surged again in September.
• Now the protocol has launched a trailer for V2, coming in spring 2024.

In the midst of a staggering decline in transactions and user activity, crypto social media app Friend.tech has released a trailer teasing an upcoming “V2” revamp set for launch in spring next year.

Friend.tech burst onto the scene in August rapidly accruing over 100,000 users and $25 million in total value within its first few weeks, according to DefiLlama . This made it the second-largest revenue maker among crypto protocols for a brief time.

A Successful Launch Followed by a Fast Decline

The unique platform, which is still technically in beta, allows individuals to buy and sell “keys” to private chatrooms that are linked to specific Twitter (now X) accounts. These keys grant access to exclusive content and conversations with various people and influencers on X. Essentially, Friend.tech billed itself as “the marketplace for your friends” – a portal to pay for personalized access to the conversations and communities of prominent figures on X.

But the success was short-lived. Just weeks after it launched, the blockchain-based social network saw its usage crumble , with 95% of its activity evaporating by the end of its first launch month.

However, the new project saw a much-needed second wind, with activity picking up again within weeks. Daily transactions on Friend.tech have plummeted nearly 99% from a mid-September peak of more than 500,000 per day down to fewer than 2,000 per day, as of the time of writing (December 19 2023), according to analytics site Dune . 

Similarly drastic drops can be seen across the board in key metrics , like number of active buyers and sellers on the platform, total value locked, protocol inflow and fees. The decline of Friend.tech might have been hastened by reports of fraud on the site, though this problem isn’t unique to them. Others have pointed to the need for an invite code for new users.

Unfortunately, the new trailer does little to actually preview what these changes will specifically entail beyond broadly touting a spring 2024 release date. 

A Tough Landscape for SocialFi and New Social Apps

To approach its peak of 100,000 daily transactions and $25 million in daily value, Friend.tech’s Version 2 must tackle the core issues behind its rapid decline. However, the specific causes, beyond a general disillusionment with SocialFi—a blend of social media and decentralized finance (DeFi) that often rewards users in cryptocurrency—are not entirely clear.

Friend.tech is one of the more high profile examples of blockchain technology being applied outside of cryptocurrency. In the beginning, it attracted high-profile users, including NBA players. But like many social apps launched this year, including Threads and Bluesky (the two most high-profile Twitter/X competitors), Friend.tech has struggled to maintain momentum.