Friendtech Faces Sell-Off as SocialFi Giants Shift to New Bitcoin City
Turmoil strikes the world of SocialFi as the once-dominant Friendtech platform grapples with a mass exodus of its top users. Influential figures such as NFT luminary Pranksy and the notable Vombatus, previously known for holding the most expensive key on the platform, recently liquidated a substantial portion of their Friendtech assets and migrated to New Bitcoin City (NBC), an emerging SocialFi platform built on a custom Layer 2 protocol layered atop the Bitcoin blockchain.
NBC has witnessed a surge of approximately $1 million influx within a single day, propelling its total value locked (TVL) beyond $3 million, as reported by DeFiLlama. Meanwhile, Friendtech has been grappling with an outflow of nearly $2 million over the past 48 hours.
Vombatus, in a surprising move, offloaded 176 of their own keys for over 850 ETH (equivalent to $1.5 million), causing a steep 75% plunge in the key’s valuation. Although Vombatus still retains 150 keys, the sudden sell-off triggered a cascading effect, compelling other users to shield their portfolios against further depreciation.
The recent events have exposed the vulnerabilities of the prevalent (3,3) or (fren, fren) strategy, initially popularized by OlympusDAO, where users exchanged keys with an unspoken agreement not to sell each other’s keys. Observers note that in this recent market turbulence, the allure of immediate gains has overshadowed the principles of this strategy.
Critics have directed their discontent towards Friendtech’s development team, helmed by Racer, citing a lack of transparency regarding the platform’s future direction and sluggish progress in implementing user-friendly features. Community members stress the urgency for the Friendtech team to communicate a clearer vision for the platform, to ensure a more resilient ecosystem.
In response to the mounting pressure, Racer recently shared an update on X, emphasizing a renewed focus on ‘usability and enjoyment’ after prioritizing security in the preceding weeks. While some Friendtech enthusiasts remain nonchalant about the exodus to NBC, they express a collective desire for enhanced communication and the introduction of innovative features from the development team.
However, there are dissenting voices among the community, emphasizing that the migration to NBC is primarily driven by short-term profit motives rather than a commitment to fostering the Friendtech ecosystem. Disgruntled users express their determination to remain steadfast on the platform despite the shifting tides. Amidst these divergent views, one thing remains clear: the recent developments within Friendtech underscore the pressing need for both operational stability and consistent user engagement.
