In the dynamic world of SocialFi, where the battle for supremacy is relentless, a certain Friend.tech user made a splash by dumping keys worth 850 ether (eth) on Monday.
This move was followed by a move to a rival platform, New bitcoin City (NBC), a social app built on the bitcoin blockchain.
NBC surges as Friend.tech sees money outflows
This development comes at a critical point for Friend.tech, which, while initially a pioneer in the SocialFi space, is now facing stiff competition as new opportunities emerge, with apps like New bitcoin City rapidly gaining traction.
Over the past two days, several prominent users, including nft influencer Pranksy and user Vombatus, who once held the platform’s most valuable key, decided to liquidate their assets in Friend.tech and transition to NBC.
shameless accomplice… I like it @NewCityBitcoin the best of all the SocFi apps right now and the vibes are fun. I think we see a new meta where https://t.co/HgSc6IDYWN and NBC are the leaders in the SocFi space.
– Wombatus (@Vombatus_eth) October 19, 2023
According to wallet data, Vombatus, known by the same name on both platforms, pocketed approximately $1.5 million after selling 176 keys. In particular, Vombatus still possesses 150 keys.
The mass migration to NBC has caused significant changes to the landscape. NBC saw an influx of approximately $1 million in the past day, pushing its total value locked (TVL) above $3 million, according to DeFiLlama; Meanwhile, Friend.tech saw outflows totaling around $2 million in the past two days.
Friend.tech faces growing threat as new opportunities emerge
Friend.tech, known for allowing users to grant access to closed group chats via keys, saw rapid growth after launching in August. Within three weeks, it generated millions in revenue from more than 100,000 users, inspiring imitations on other networks as new opportunities emerged. As such, Friend.tech‘s initial wave of growth has stalled. Platforms like NBC are emerging as formidable contenders.
New bitcoin City, a bitcoin trading and gaming platform, launched in early August. It hosts a variety of casual, board, and strategy games accessible on web and mobile platforms. The platform also has a native marketplace and a non-fungible token (nft) auction house.
A New bitcoin City developer, known as @punk3700, declared his intention to expand the usability of bitcoin beyond being just a currency, expressing the ambition to venture into art, artificial intelligence and DeFi.
Despite the limited use of bitcoin in decentralized finance (DeFi) applications, primarily through tokenized versions on other chains such as ethereum or Solana, the recent “bitcoin Request for Comments” (BRC-20) standards have allowed developers issue tokens and create DeFi applications on bitcoin. This has given rise to digital artworks and bitcoin-based meme coins in recent months.
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