Over the weekend, total trading volume on Friend.tech exceeded $10 million, the highest in several weeks.
However, industry analyst Colin Wu said, “This could be exit behavior.”
According to Dune Analytics, Ethereum is being withdrawn from the platform because keys are being redeemed faster than they are minted.
Friend.Tech ETH Exodus
Over 5,000 ETH were withdrawn from the platform in two days over the weekend. This is the largest withdrawal since October 24, when 4,380 ETH were withdrawn in a single day.
Additionally, the total value of Friend.tech fell 21% over the weekend to 17,100 ETH or $33.6 million.
This is the lowest TVL on the SocialFi platform since mid-September.
On November 18 and 19, Friend Tech’s total trading volume exceeded US$10 million, the highest in more than half a month. This may be an exit behavior. A total of 4.42k ETH was withdrawn from Friend Tech in two days over the weekend. Friend Tech TVL…
-Wu Blockchain (@WuBlockChain) 20 November 2023
Since its peak of nearly $50 million in early October, Friend.tech TVL has declined by approximately 34%.
Additionally, there has been virtually no increase in the number of new users since the end of October. According to Dune, the platform’s total cumulative user figure is 839,190, but overall activity has declined.
Furthermore, the platform is plagued with scams as malicious actors target its users through phishing and SIM-swap attacks.
Over the weekend, the team informed of They identified and removed 600,000 accounts identified as bots. However, it appears that genuine users have also been excluded.
user lockout
Prominent crypto influencers are now reporting being locked out of the platform. One said they lost more than 10 ETH, from which the platform would not help them recover. “Salsatequila” said, “All of these social finance apps are inefficient, and I regret joining them.”
Meanwhile, analyst Alex Kruger said the Friend.tech team “outwitted me with the upgrade, then refused to help,” adding:
“These people are absolutely useless. The founders have a fiduciary duty to the holders who put up their money.
Update on my social finance journey:
1) Friend tech locked out and they won’t help me recover; Possibly lost 10+ ETH.
2) All my awaks were gone in star arena, lost like 1500 awaks.
– SalsaTekila (@SalsaTekila) 19 November 2023
It appears that the hype for Friend.tech may be waning as users become dissatisfied with the platform and begin withdrawing their assets (if they can).
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source: cryptopotato.com
