As a seasoned analyst with over two decades of experience in the tumultuous world of cryptocurrencies, I’ve seen more than my fair share of projects that have soared to dizzying heights only to crash and burn spectacularly. Friend.tech, unfortunately, seems to be joining this infamous club.
friend’s native cryptocurrency, known as FRIEND, experienced a significant downturn on Friend.tech’s Web3 platform, plummeting over 52% within the past 24 hours. This dramatic drop occurred because the developers of Friend.tech relinquished control over the platform’s smart contracts by essentially freezing the system, thus halting any potential future modifications on the platform.
In simpler terms, Friend.tech was a well-liked social media platform in the Web3 sphere, where users exchanged tokens for access to the content streams of prominent figures, known as ‘keys’. This platform made its debut on the Coinbase Layer 2 network, Base, last August 2023. It quickly gained traction within the cryptocurrency community.
The excitement surrounding this new protocol was immense; it managed to surpass Ethereum‘s daily earnings just one month after its launch due to such high demand. Subsequently, Friend.tech successfully raised funds during a seed round from the prominent crypto venture capital firm Paradigm, although the exact amount remains undisclosed.
What Happens to Friend.tech Next?
On Sunday, September 8, Friend.tech declared that “no charges from either smart contracts or the website are currently being directed towards the Friend.tech development team’s multisig wallet.” Furthermore, it was mentioned that the platform will continue to function without developer control, making it highly improbable, if not impossible, for new features to be implemented.
The settings for admin control and ownership have been adjusted to a fixed value (0x000…000) to ensure that no modifications can be made to their associated fees or features in the future.
This adjustment won’t influence the independent web platform, which will carry on functioning just as it has been. There will be no charges imposed on this platform or any associated parties.
— friend.tech (@friendtech) September 8, 2024
Following the release of Friend.tech Version 2 in May, the price of its cryptocurrency FRIEND significantly dropped when Racer announced their departure from the Base blockchain. Subsequently, the developers opted to abandon FriendChain and continue on Base instead. Unfortunately, the value of the FRIEND token didn’t rebound after this market dip.
Although the launch of V2 and token distribution initially attracted more users, the associated protocol fees soon leveled off. In fact, since June, the platform has only collected around $60,000 in fees. Moreover, the recent removal of contract ownership makes it highly improbable for a new team to step in and implement fresh features. Consequently, this action further diminishes the likelihood of the platform’s resurgence.
On the yearly chart, the FRIEND price is down by more than 96%.
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2024-09-09 13:45