Decentralized social media protocol Buddy.Tech captured consideration final yr however has noticeably pale from the radar just lately.
CryptoSlate, utilizing Dune Analytics knowledge compiled by 21.co, found a regarding pattern – the platform’s failure to draw new customers, coupled with indifference from its present person base. On Jan. 28, the platform garnered a mere 19 new customers engaged in no less than one transaction, a stark distinction to its peak of over 70,000 customers in September.
A separate dashboard by Cryptokoryo sheds gentle on the extent of the downturn. On the identical date, Buddy.Tech recorded solely 5,544 transactions, signaling a staggering 99% lower from its peak quantity of virtually 540,000.
Including to the downward spiral, DeFillama’s knowledge reveals a constant adverse outflow all through this month.
Per the info, Buddy.Tech skilled constructive USD move solely on Jan. 16, with $313,000 coming into the platform. Nonetheless, greater than $5 million flowed out on different days, considerably dropping the full worth of property locked on the platform to $30 million.
Furthermore, this decline is additional mirrored within the charges generated by the community, plummeting from a day by day common of almost $1 million to a mere $50,000 within the final two days.
‘Greatest lowlight’
A number of causes may very well be blamed for Buddy.Tech’s falling numbers. Nonetheless, points started when a number of customers suffered sim-swap assaults as a result of platform’s lax safety. CryptoSlate reported that no less than $20 million within the platform customers’ property have been susceptible to those assaults.
Whereas efforts to deal with safety considerations have been made promptly, this incident mirrored the platform’s challenges in protecting tempo with bug fixes and implementing important insurance policies for its quickly increasing person base.
The platform’s viral success additionally spawned copycats like Stars Area on different blockchain networks, together with Avalanche. DeFillama knowledge reveals these protocols are additionally struggling for adoption and use.
Teng Yan, Head of NFT Analysis at Delphi Digital, known as Buddy.Tech’s setback the “largest lowlight” of the previous yr. He highlighted the challenge’s potential to make crypto mainstream however criticized its staff’s execution.
“[Friend.tech] might have been a high client app bringing crypto mainstream. An on-chain repute layer constructed on high of present social graphs. Nice concept however poor execution,” Yan added.
Buddy. Tech’s viral development
Buddy.Tech launched an revolutionary method for customers to monetize their recognition within the crypto area, permitting customers to purchase and promote “keys.” These keys enabled consumers to ship non-public messages to sellers.
Because of this, a number of high-profile figures, each from the cryptocurrency world and the broader leisure trade, used Buddy.Tech to connect with their group, and the platform was driving transactions on Base, the layer2 community it was constructed on.
Regardless of this preliminary success, the blockchain-based social community confronted a fast decline, shedding 95% of its exercise inside a month of launch. But, a revival occurred in September, with day by day buying and selling volumes nearing $10 million. At its peak, the protocol boasted a TVL exceeding 30,000 ETH ($50 million), outperforming giants like Uniswap and the Bitcoin community in charges generated.
