Friend.tech, a new player in the decentralized social media space, finds itself in a precarious position. The platform announced a punitive measure to strip users of their reward points if they choose forked or copied versions of its services. The news came via an official tweet on August 28, just 17 days after the platform’s public launch. The tweet explicitly stated that those who switch to other versions would be “automatically excluded from earning points and would lose existing points.” Since the announcement, hundreds of disapproving comments and reposts have flooded in, denouncing the platform for its anti-competitive practices.
Adding fuel to the fire: the ambiguity of reward points and declining metrics
Friend.tech has regularly distributed “reward points” to its beta testers, promising a cumulative total of 100 million points to be distributed over six months. However, the utility of these points remains shrouded in mystery; the platform has only hinted that they will serve a “special purpose” upon official release. Speculations range from points transforming into governance tokens to a possible financial significance. Such ambiguity adds another layer of tension, especially as metrics like user activity, incoming flows, and transaction volumes on Friend.tech are plummeting. According to Dune Analytics, the platform has experienced a staggering 90% drop in transactions, going from a peak of nearly 525,000 on August 21 to less than 50,000 on August 28.
The crypto community has been quick to express its discontent. Users and market influencers alike have delivered scathing responses, accusing the platform of violating the industry’s fundamental principles of open competition.