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- 1 Friend.tech, a socialfi crypto platform was alleged to leak the personal data of around 100K users.
- 2 In response, the decentralized social media platform denied the statement, ensuring the user data is in safe hands.
On August 21, the newly developed socialfi crypto platform came into focus. Friend.tech, a marketplace for friends, was suspected of breaching the data privacy rule and leaking the personal data of more than 100K users. The team behind Friend.tech refused the claims, stating there was no breach.
Why Friend.tech is in the Spotlight
Friend.tech is a socialfi crypto platform, launched on August 10 as a marketplace for friends. The app allows users to essentially tokenize their social network, developed over Base, a crypto exchange, Coinbase’s layer 2 network. Friend.tech is the first ever viral social decentralized application designed to assist users to utilize trading activities in a more convenient way.
On August 21, the app came into flashlight after the day of launch. A post from The Block stirred the crypto market. “The data posted by Banteg was leaked information”, posted The Block. The Block claimed that Friend.tech leaked performance information and data of around 100K users. The social trading app in a few days of launch sought the attention of approximately 12,000 individuals and hit around 100K transactions in volume. With enhanced popularity, the challenges for the social trading app also rose and the allegation of leaking personal information of 100K users is one of the biggest challenges the app is facing at present. However, the team didn’t sit quietly and responded to the post.
Response of Socialfi Crypto Platform
The team at Friend.tech has responded to the report after certain concerns were raised by a few of the platform’s users over data privacy. “There is no leak of any personal data and information of the users and the user data is safe and secure”, responded the Friend.tech team. In addition, the team clarified that the information comes from scraping its public API.
“It’s like stating someone hacked you by looking at the public Twitter feed” Friend.tech argues. In addition, the post also received input from X’s Community Notes contributors.
The report from The Block has received negative feedback from the X’x community.
“The data is public to everyone and anyone can work it out by reading a block explorer”, the Community Notes added. In addition, Spot On Chain stated that the wallets created by certain users can be observed through the API. The information can be used by permitting bots to near-immediately purchase shares of big accounts as soon as users log in to the social trading app.
“Many of the bots have already taken advantage of this” added Spot On Chain. Friend.tech emerged as one of the most popular decentralized apps in the crypto marketplace as well as becoming the second most fees generating protocol after Ethereum.
Conclusion
A report by the Block too bought Friend.tech app in highlights. According to The Block, a social trading app has leaked the personal information of around 100K users. However, Friend.tech’s team completely denied the leak of any information about the user. Also, the X community presented a negative response to The Block report.
Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
