Tech
Friend.tech shifted nearly 50% of its commissions to Coinbase while TVL halved
According to Tom Wan, on-chain analyst at 21.co, Friend.tech’s daily activities related to key minting have seen a decline, with minimal minting on most days.
In a X thRefA.D On January 7, Wan revealed that the decentralized social network transferred nearly half of its earned commissions, totaling 7,800 ETH (equivalent to $16.6 million), to a centralized cryptocurrency exchange. CoinBase.
1/ @friendtech Treasury (All Earned Fees) finally transitioned from an EOA to a Multi-Sig address in December 2019.
Meanwhile, they also sent half of the commissions they earned, or 7,800 ETH ($16.6 million), to Coinbase. pic.twitter.com/UoISqyUGGV
— Tom Wan (@tomwanhh) January 7, 2024
The latest move comes as Friend.tech experiences a substantial decline in assets locked into the project. At its peak, the total value of assets locked in Friend.tech’s smart contract reached 30,000 ETH (around $50 million), but has since dropped by 50% to the current level of 15,000 ETH (around $33 million of dollars).
2/ FT’s TVL is down 50% compared to ATH
At its peak, its TVL is 30,000 ETH ($50 million) and currently it is only 15,000 ETH ($33 million)
Daily key minting tasks are minimal. More refunds than minting on most days pic.twitter.com/u5Wcj2AO94
— Tom Wan (@tomwanhh) January 7, 2024
Wan pointed out that the exodus of users also coincides with daily activities related to key minting witnessing a decline, with minimal minting and increased redemption frequency on most days.
As of this writing, just over 1% of active users on Coinbase’s Base blockchain are using Friend.tech, a stark contrast to the peak period when nearly 55% of active addresses on Base were using the project, contributing to 18% of active users on Base. the total commissions generated during that period. Second data from DefiLlama, total commissions generated on Friend.tech have been declining since September 2023, reaching new lows at 10 ETH on average per day.
Launched in August 2023, Friend.tech is a Base-based social networking application, where users can monetize their content or skills. In its essence, the startup is a market for friendsa decentralized platform where users tokenize their social connections, granting privileges such as private messaging and interaction rights.