Decentralized social media protocol Buddy.Tech captured consideration final 12 months however has noticeably pale from the radar not too long ago.
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 current consumer 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 detrimental outflow all through this month.
Per the info, Buddy.Tech skilled constructive USD movement solely on Jan. 16, with $313,000 getting into the platform. Nevertheless, 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 might be blamed for Buddy.Tech’s falling numbers. Nevertheless, points started when a number of customers suffered sim-swap assaults because of the platform’s lax safety. CryptoSlate reported that no less than $20 million within the platform customers’ property have been weak to those assaults.
Whereas efforts to deal with safety issues 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 consumer base.
The platform’s viral success additionally spawned copycats like Stars Area on different blockchain networks, together with Avalanche. DeFillama knowledge exhibits these protocols are additionally struggling for adoption and use.
Teng Yan, Head of NFT Analysis at Delphi Digital, referred to as Buddy.Tech’s setback the “largest lowlight” of the previous 12 months. He highlighted the undertaking’s potential to make crypto mainstream however criticized its group’s execution.
“[Friend.tech] might have been a high client app bringing crypto mainstream. An on-chain status layer constructed on high of current social graphs. Nice concept however poor execution,” Yan added.
Buddy. Tech’s viral development
Buddy.Tech launched an modern approach for customers to monetize their reputation within the crypto house, permitting customers to purchase and promote “keys.” These keys enabled consumers to ship non-public messages to sellers.
Consequently, a number of high-profile figures, each from the cryptocurrency world and the broader leisure trade, used Buddy.Tech to hook up with their neighborhood, 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.
