Friend.Tech devs abandons the project
Amidst the burgeoning Web3 sphere, Friend.Tech, a pioneering social network that enabled token exchanges for access to content from renowned creators, is reportedly scaling down operations merely a year post its acclaimed debut.
On the eighth of September, the minds behind the platform opted to cede control over its digital contracts, transferring their governance to Ethereum's zero address. Such an act solidifies the platform's status quo, barring any potential modifications or enhancements.
The announcement elucidated that the Friend.Tech development crew would not accrue any fees henceforth. Although the network seemingly continues to function, the forfeit of its smart contract supervision significantly dims prospects of new developments or revisions.
After the revelation, data from CoinGecko illuminated a 26.4% depreciation in the value of their indigenous FRIEND token, now valued at $0.05942, reaching a record nadir of $0.05748 by the ninth of September.
The repercussions of FRIEND’s downturn extend to its investors. Lookonchain disclosed that crypto luminary Machi Big Brother, having invested a staggering 5,200 ETH — valued approx. $16.7 million for 11.1 million tokens — is now grappling with a precipitous $16 million devaluation, plummeting the worth to a meager $0.7 million.
Since its emergence on Base in August 2023, Friend.Tech captivated attention with its novel approach of merchandising “keys” to unlock influencer-exclusive content. Nevertheless, the trading fervor on the platform witnessed a downturn. The situation worsened as Racer insinuated a migration away from the Base blockchain for an impending project, “FriendChain.”
Though these ventures were ultimately forsaken, the ensuing turmoil and ambiguity impaired the platform’s vibrancy. An attempt to rejuvenate interest via unveiling Version 2 and a token airdrop momentarily lured users, yet failed to cement enduring user engagement, with protocol fees amassing a mere $60,000 since June 2024. Recent assessments show a dramatic slump in platform fees to a mere $71, potentially prompting the team’s decision to relinquish control.
This downturn mirrors challenges faced by other prominent decentralized social networks like Farcaster and Lens. According to an analysis by a Dune analyst, Farcaster’s new user count plummeted from a February high of 15,000 to only about 650. Likewise, daily active participation descended approximately 40%, from a July zenith of 100,000 to around 60,000 currently.
