3LAU announces exit from friend.tech: Concerned about AMM risks, will compensate affected holders

Justin Blau, a DJ and cryptocurrency investor with 250,000 followers on X, suddenly announced his departure from the decentralized social media platform friend.tech. He explained that his decision was due to concerns about the regulatory risks that the platform might bring.

The controversial friend.tech, which has been gaining popularity recently

The decentralized social platform friend.tech launched on Base chain in mid-August has sparked a wave of enthusiasm. According to Dune data, its user base has exceeded 290,000. The total number of transactions has surpassed 6.03 million.

However, along with its success, numerous controversies have arisen. The media outlet TechFlow analyzed that friend.tech is exploiting human greed and essentially running a Ponzi scheme. Layer-1 blockchain company DeSo also believes that due to its high entry barriers and difficulties in community building, friend.tech seems to be heading towards decline.

TechFlow's analysis of the popular social application friend.tech: Is it essentially a Ponzi scheme?

Is the glory of Friend.tech gone? Decentralized social network DeSo points out key issues in Web3 social applications

Prior to this, friend.tech's implementation of anti-competitive policies out of fear that existing users might switch to other cloned apps had infuriated the Web3 community. Shortly after, founder Racer issued an apology and retracted the policy of revoking points.

friend.tech's user punishment backfires, friend.tech founder breaks down: "I'm sorry, I've always been fearful, I don't want to disappoint everyone"

However, friend.tech users are required to mark their social presence by purchasing keys from other users or selling their own keys. Given that keys could have financial implications for users and their value may fluctuate due to various factors, this move by 3LAU also highlights the challenges faced by individuals using such social media platforms.