Friend.tech Chain Migration Triggers 22% FRIEND Price Drop

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As a long-term investor in Friend.tech, I’ve watched with great interest as the project gained significant traction on the Base L2 blockchain over the past year. The unique approach to social interaction and monetization was intriguing, and I believed that the protocol had the potential to disrupt the social media industry.

As an analyst, I’ve noticed that the recent announcement of Friend.tech’s collaboration with Conduit for their migration from Layer 2 (L2) base on Base blockchain has not been met positively within their community. The aftermath of this news was a significant drop in the value of Friend.tech’s native token, FRIEND. At the current moment, the token is trading at $0.6862, representing a substantial 22.95% decrease over the past 24 hours.

Friend.tech Offers $200K Bounty for Alternative to Base

As a crypto investor, I’ve been closely following the development of Friend.tech since its launch on Base, an Ethereum L2 network created by Coinbase Global Inc (NASDAQ: COIN) about a year ago. This project has stood out to me due to its innovative approach to social interaction and monetization, which has resulted in impressive growth and buzz within the crypto community.

Friend.tech raised some concerns when it appeared that their monetization plan might bring unwanted scrutiny from regulatory bodies.

After that, the protocol started exploring options beyond the Base blockchain and went so far as to propose a reward of $200,000 for finding an alternative solution. On June 9, Friend.tech advanced their migration plan by disclosing a partnership with crypto infrastructure startup Conduit. According to their announcement, they are now collaborating on the development of a new blockchain named Friendchain.

Users also had the opportunity to join the Friendchain testnet and reserve a place for themselves, which granted them eligibility for the upcoming FRIEND airdrop. According to Friend.tech, this was announced at some point.

As a long-term crypto investor, my goal is to keep earning passive income through collecting protocol fees. Eventually, I aspire to sell my stake to a major Web2 company at a substantial Software-as-a-Service (SaaS) valuation. By becoming the go-to Web3 platform for monetized social media, I believe this transaction will bring significant returns on my initial investment.

Friend.tech Community Members Questions Migration from Base

As a researcher studying the cryptocurrency scene, I’ve come across some debate among crypto enthusiasts regarding the proposed shift from Base to Friend.tech. Many members of the Friend.tech community have raised concerns about introducing yet another chain into the mix. The anonymous Friend.tech user known as The Giver voiced his perspective that it may be premature for the project to consider such a move at this stage.

Crypto trader Dr. Kojipup asked:

“No hate, just a genuine question, What is the value proposition of a social-focused chain?”

As a researcher examining the queries raised by various pseudonymous commentators, I came across one from “ox0,” who questioned Friend.tech regarding the necessity of implementing a blockchain in their system. Additionally, Pop Punk, the co-founder of Gaslite, joined the conversation and asked simply, “Why?”

The questions posed during the Friend.tech community meeting unequivocally demonstrated that a large portion of its members are opposed to the planned migration. The sudden decline in the FRIEND token’s value further highlights this discontent. On Sunday, there was a momentary surge in the token’s price up to $1.29, but it proved fleeting given the ongoing downward trend the cryptocurrency has experienced.

Currently, FRIEND is 60% less than its May level. At the same time, its price has only risen by a mere 1.8% since hitting an all-time low last Friday.

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2024-06-10 17:57