Friend.tech, a decentralized finance (DeFi) platform, has recently experienced a significant decline in its Total Value Locked (TVL) and a surge in key redemptions. On October 4, the platform saw its largest single-day drop in TVL, losing about 2.3K Ethereum. This decline continued over the next few days, with the TVL dropping to 26.48K ETH. Despite the decrease in TVL, idle capital remained steady at 10.34K ETH.
Data analyst Tom Wan highlighted the redemption of keys on Friend.tech. On September 14, a total of 6.7K ETH worth of keys were redeemed, but during the same period, 6.9K ETH worth of keys were minted. On October 4, there was a notable surge in key redemption, reaching 2.1K ETH, valued at $3.5 million. Users who redeemed their keys chose to withdraw the funds from their accounts, resulting in no increase in idle capital within the network.
One of the largest key holders, Chang, offloaded 43 of his keys, making profits of about 140 ETH. This led to a significant price decline in the key, from 3.89 ETH to 2.64 ETH. However, Chang’s profit is still in his Friend.tech account, as he spent 77 ETH minting new keys and bought back 15 of his keys at a lower price.
The decline in TVL and surge in key redemptions are believed to be due to ongoing sim swap attacks on Friend.tech users. Reports indicate that a scammer could make $387K in Ethereum through these attacks. The platform has since upgraded its system to include login removal options, but the recent withdrawals and TVL drops are primarily attributed to the sim swap attacks.
In summary, Friend.tech has seen a significant drop in its TVL, with the largest single-day decrease occurring on October 4. There has also been a surge in key redemptions, likely influenced by sim swap attacks on users. Despite these challenges, idle capital on the platform remains steady, indicating potential for users to reenter the market..
#Friend.tech #Records #Largest #SingleDay #TVL #Drop
Data analyst Tom Wan highlighted the redemption of keys on Friend.tech. On September 14, a total of 6.7K ETH worth of keys were redeemed, but during the same period, 6.9K ETH worth of keys were minted. On October 4, there was a notable surge in key redemption, reaching 2.1K ETH, valued at $3.5 million. Users who redeemed their keys chose to withdraw the funds from their accounts, resulting in no increase in idle capital within the network.
One of the largest key holders, Chang, offloaded 43 of his keys, making profits of about 140 ETH. This led to a significant price decline in the key, from 3.89 ETH to 2.64 ETH. However, Chang’s profit is still in his Friend.tech account, as he spent 77 ETH minting new keys and bought back 15 of his keys at a lower price.
The decline in TVL and surge in key redemptions are believed to be due to ongoing sim swap attacks on Friend.tech users. Reports indicate that a scammer could make $387K in Ethereum through these attacks. The platform has since upgraded its system to include login removal options, but the recent withdrawals and TVL drops are primarily attributed to the sim swap attacks.
In summary, Friend.tech has seen a significant drop in its TVL, with the largest single-day decrease occurring on October 4. There has also been a surge in key redemptions, likely influenced by sim swap attacks on users. Despite these challenges, idle capital on the platform remains steady, indicating potential for users to reenter the market..
#Friend.tech #Records #Largest #SingleDay #TVL #Drop
