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Friendtech Hit By Selloff As SocialFi Whales Move To New Bitcoin City

The battle for SocialFi supremacy continues to rage, and while Friendtech may have kicked off the latest boom, its position atop the sector is showing signs of weakening.

Over the last two days, many prominent users, including NFT influencer Pranksy and Vombatus, a colourful figure whose key was formerly the most expensive on the platform, sold the majority of their assets on Friendtech and moved over to New Bitcoin City (NBC), another SocialFi platform that runs on a bespoke Layer 2 built atop the Bitcoin blockchain.

NBC has seen around $1M in inflows over the past day, pushing its total value locked (TVL) above $3M, according to DeFiLlama. Meanwhile, Friendtech has seen outflows of around $2M in the past two days.

New Bitcoin City TVL chart
New Bitcoin City TVL chart

Vombatus sold 176 of his own keys for over 850 ETH ($1.5M) without warning, dropping the price by 75%. While he retains 150 keys, the move triggered a cascade as other users sought to protect their portfolios from further drawdowns.

Friendtech Hit By Selloff As SocialFi Whales Move To New Bitcoin City
Friendtech Hit By Selloff As SocialFi Whales Move To New Bitcoin City

Rise and Fall of (3,3)

Over the past few weeks, the preferred strategy for farming Friendtech points has been to exchange keys with other users with an informal understanding not to sell each other’s keys. This is referred to as (3,3) or (fren,fren).

Once popularized by OlympusDAO, the selloff over the past two days has again highlighted the flaws in the strategy, as whoever sells first often comes out ahead.

“It appears that ETH was more important than any imaginary 3,3 reputation,” NFT enthusiast Otto Suwen told The Defiant.

Lack Of Progress

Others blame the development team, led by Racer, for a lack of clarity on the future direction of the app and for taking too long to deliver seemingly simple features that would enhance the user experience.

“FT team can do a better job sharing their vision for the app so these moments are easier to bear for the ecosystem they're trying to create,” wrote 0xbreadguy.

Perhaps in response to community pressure, Racer posted an update on X, saying that the team will prioritize 'usability and fun,' after focusing on security over the past weeks.

Friendtech Hit By Selloff As SocialFi Whales Move To New Bitcoin City
Friendtech Hit By Selloff As SocialFi Whales Move To New Bitcoin City

The Defiant reached out to some active Friendtech users seeking insights into the situation.

Most aren’t too concerned about the exodus to NBC but want to see new features and improved communication from the developers.

“Time to be decisive if you want to stay or leave, and act on that,” said Lutherin, a self-proclaimed Friendtech addict.

“Many are using NBC as an excuse, they're leaving to chase the shitcoin pump,” opined BigHead.

“They are not here to farm the airdrop or create content, they are only interested in fees on their own keys. As soon as the volume drops, they move to a new fork and call everyone there. But they won't trap me,” said retired Blur farmer minysmoral, when asked about prominent accounts abandoning the platform.

Cheesypouf echoed the sentiment. “They're moving because it offers the best chance for them to extract what they can from a somewhat new segment of buyers. That’s all,” he said.

Not everyone is convinced, however.

“Some people downplaying it, but look at the major players either they're liquidating in mass or clearly trickle selling out - not something to ignore. Doesn't help that this app has been so buggy the last few days,” said ozark.eth.

Disclosure: The author has an active account on Friendtech.

To continue reading this as well as other DeFi and Web3 news, visit us at thedefiant.io

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