- Decentralized social media platform Friend.tech has threatened to withhold benefits for users moving to rival platforms
- The threats come a day after the app’s transaction volume dropped by 90% and fees generated plummeted by over 80%
- Some in the blockchain space aren’t happy with the threats saying it’s not the way to fight competition
Decentralized social media platform Friend.tech has threatened to punish users who entertain rival apps by canceling reward points earned on the platform. The threats come at a time when the hype around the blockchain-based app has dropped steeply judging by the transaction volume and daily fees which have tanked by over 90% and 80% respectively in less than a week. The web3 community isn’t happy with the threats saying that it’s not the way to fight competition, a response that may see more users abandon the app.
Don’t “Gatekeep” People
According to an X (formerly Twitter) post, Friend.tech argued that the decision to snatch rewards points from disloyal users and to force them out of the rewards program is to show their allegiance to loyal users. The disloyal users will however not be excommunicated from the app.
We expect @friendtech clones and other types of copies will emerge.
To make sure loyal users are rewarded fairly during our beta, users moving to forks and copies will automatically opt out of earning Points and forfeit existing points. They will be able to use the app normally pic.twitter.com/C1rTEQQr17
— friend.tech (@friendtech) August 28, 2023
Some of those who disagreed with Friend.tech’s way of handling ‘rebels’ noted that the platform “should be the best instead of trying to gatekeep people from other platforms.”The app’s announcement comes three days after the daily fees generated on the platform fell from $1.7 million to around $220,000 between August 21 and August 28.
Respectfully, people should be allowed to try what they want.
You want to win? Be the best instead of trying to gatekeep people from other platforms.
It’s like Twitter not sharing ad rev with any of the creators that make a threads account.
I love you guys but this is not it.
— Reetika (@ReetikaTrades) August 29, 2023
Is Friend.tech Dead?
The revenue generated has also plummeted from $840,000 to $112,000 within the same period, while the number of daily transactions dipped from highs of over 500,000 to below 55,000, causing the crypto community to think that the app’s best days are officially over.
RIP Friendtech
August 2023-August 2023💀 pic.twitter.com/Fb0bh23Fyo
— Beanie (@beaniemaxi) August 26, 2023
Activities on the app recently contributed to Coinbase’s layer-two platform Base beating Ethereum in daily transactions, a phenomenon that some commentators said was short-lived.
Although Friend.tech didn’t name any rival apps, the announcement shows a possible flooding of similar platforms in the web3 world.
