The Controversial Decision of friend.tech
The latest decentralized social media platform in the crypto space, friend.tech, has caused a stir within the community due to its recent announcement regarding penalties for users who choose to participate in forks or copycat versions of its tokenized social media platform. The decision to punish users has been met with widespread criticism, questioning the platform’s commitment to decentralization and competition.
Opting Out of Earning Points
Friend.tech’s official account, friend.tech X, took to Twitter on August 28 to announce the punitive measures and justify them as a means to ensure fair rewards for loyal users during the beta phase. According to the tweet, users who migrate to forks or copies will automatically opt out of earning Points and forfeit any existing points. Although the tweet did not specify any particular competitors, users speculated the reference could be to a new DeSo application called Shares, scheduled for public beta release on August 31.
A Strategic Move and Uncertain Purpose
Friend.tech has been actively airdropping “reward points” to its beta testers on a weekly basis, with a total distribution of 100 million points over a span of six months. However, the purpose and use of these points remain unclear, with the team only hinting that they will serve a special purpose once the app reaches official release status, which has led to various speculations within the community. Some anticipate the translation of these points into friend.tech governance tokens, while others believe they may hold financial significance for users. Interestingly, some also speculate that the seed round investment from Paradigm suggests the possibility of a friend.tech native token airdrop in the future.
Contrary to the Crypto Principles
Friend.tech’s announcement did not sit well with members of the crypto community, sparking immediate backlash and provoking hundreds of negative comments and reposts. Many criticized the platform for its anti-competitive stance, arguing that penalizing users for exploring alternative options goes against the core values of the industry. Pseudonymous trader CryptoKaleo expressed their disappointment, stating, “Threatening/penalizing users for trialing other platforms is completely against everything this industry stands for.” Another individual voiced their skepticism by saying, “This is a prime example of how not to handle competition in Web3; excited to read the apology in a few hours.”
Effect on Platform Activity and Transactions
Friend.tech’s controversial decision comes within three weeks of its public launch on August 11. However, the platform has witnessed a decline in key metrics, including activity, inflows, and transaction volume, over the past few days. According to data from Dune Analytics, transaction numbers on Friend.tech have plummeted by over 90% since its peak of nearly 525,000 transactions on August 21, with less than 50,000 cumulative transactions recorded on August 28. This decline highlights the potential negative repercussions of alienating users through decisions that are perceived as anti-competitive.
Friend.tech’s decision to penalize users for engaging with forks or copycats has ignited controversy within the crypto community. The punitive measures have been met with widespread criticism, as they contradict the principles of decentralization and competition. Moreover, the announcement appears to have had adverse effects on the platform’s metrics, with a significant decline in user activity and transactions. As the crypto industry emphasizes openness and innovation, it is essential for platforms like friend.tech to navigate competition with a different approach that aligns with the fundamental values of the community.