While a substantial portion of the cryptocurrency market revels in a week marked by positive performance, Friend.Tech, a prominent player in the SocialFi sphere, appears to be encountering a rather abrupt and noteworthy shift in its dynamics.
On 23 October, a remarkable $5.81 million made its exit from the platform, constituting the most substantial daily outflow Friend.Tech has witnessed since its inception, as reported by DeFiLlama.
The trend continued on the following day, 25 October, as the platform recorded its second-largest daily outflow, with an additional $3.21 million bidding adieu.
The downturn seemed to gain momentum when the platform's most influential creator, operating under the pseudonym 'Vombatus,' divested 176 of their own keys, amounting to roughly $1.5 million in value.
This transaction led to a notable decline in the key price, plummeting from approximately 8.3 ETH to 1.671 ETH after the sale.
Vombatus remarked on X (formerly known as Twitter):
"At least I got people to talk and use FT for the first time in a few weeks today."
Friend.Tech Spinoff: New Bitcoin City
Subsequently, Vombatus established a profile on New Bitcoin City, a Friend.Tech spinoff priced in bitcoin (BTC).
Notably, New Bitcoin City has been incentivising users migrating from Friend.Tech with enhanced airdrop offerings. In the past two weeks, the nascent platform has seen an influx of more than $3 million, as reported by DeFiLlama.
The fortunes of SocialFi apps remain diverse amidst the backdrop of this market turbulence.
In contrast, New Bitcoin City and Post.Tech are demonstrating growth and resilience.