Instagram is facing a class action lawsuit following its shocking decision to alter its Terms Of Service or TOS, only to revert it days after. But the real damage has yet to come. According to mobile app metrics firm AppData, the number of Instagram users have dropped to 25 percent after the debacle. The data reveals that Instagram’s steady number of 16.4 million active daily users have fallen to 12.4 million yesterday. AppData is sure that the decline in Instagram users was due to the terms of service announcement.

However, it’s important to note that AppData’s survey only involved users who connected their Facebook accounts to Instagram. “Our application is integrated into Facebook from one or more platforms outside the canvas. As such, only users who connect to the app using Facebook are included in the active user counts,” it said. Instragram CEO Kevin Systrom already made it clear that everything was just a misunderstanding. Systrom was quick to apologize, but it seems that the damage has already been done. Will this be the end to one of history’s most popular apps?

Filed in General. Read more about Apps and Instagram.

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