Analysts discovered hidden features of the application programming interface (API) of the decentralized social network Friend.tech, thanks to which the trading volume on the platform exceeded $5.8 million.
According to Spot On Chain analysts, the program interface of Friend.tech app, which enables the tokenization of its social networks, contains functionality for insider trading.
Friend.tech is a decentralized social networking application built by Coinbase on Base network. The platform allows users to tokenize their social connections by issuing tradable “keys” that grant holders access to private chats and other exclusive features.
The app’s API allows users to view information about the wallet addresses and names of Twitter users who have registered on Friend.tech. This data is publicly available, as the project team assures, but users were informed about it in a hidden form.
Why the Friend.tech API Attracted Attention
According to analysts, several aspects of the API’s design attracted particular attention:
- User registration data could be accessed through the API.
- Bots could monitor newly registered accounts.
- Popular creators could potentially be identified before wider market awareness.
- Early purchases could provide trading advantages to automated users.
- The incident sparked debate about transparency and privacy in SocialFi applications.
The project’s API attracted the attention of analysts after a repository with personal data of 101,183 platform users was published on GitHub. Journalists of The Block described it as a data leak, but it turned out that users provided permission to access the data, accepting the terms of the public agreement when registering. It’s worth noting that some users pointed out the fraudulent nature of Friend.tech even before the data was released.
Spot On Chain analysts suggest that Friend.tech’s API allows bots to instantly identify popular Twitter accounts and buy their assets as soon as they register on the platform, before their price rises.
According to DeFiLlama, Friend.tech’s TVL is $7.26 million. During a week and a half of operation, including the test period, the trading volume amounted to 34,230 ETH (~$5.8 million), surpassing almost all DeFi apps, as evidenced by Dune Analytics data. The protocol of the decentralized social network was officially launched on August 16 and for the first day users made over 100,000 transactions. The total number of transactions at the time of writing is already approaching 1 million.
Friend.tech’s Impact on the SocialFi Sector
Despite the controversy, Friend.tech became one of the most discussed SocialFi projects of 2023 and helped popularize tokenized social networking applications. The platform generated significant on-chain activity during its launch period and demonstrated growing interest in blockchain-based creator economies.
In 2024, Friend.tech ranked among the top 7 most popular SocialFi platforms. The project also highlighted both the opportunities and challenges facing SocialFi platforms, including user privacy, data transparency, and the sustainability of incentive-driven growth models.
