Friend.tech, a social media platform built on Ethereum layer 2 Base chain, saw its token, FRIEND, experience a dramatic fall, dropping nearly 26% to $0.067 in the past 24 hours. This plunge follows a significant move by the platform’s team, who transferred the ownership of its smart contracts to Ethereum’s null address on September 8.
The transfer was intended to “prevent any changes to their fees or functionality in the future,” according to a post on X (formerly Twitter) by Friend.tech. However, this action has sparked confusion and concern within the community.
The FRIEND token, which saw a market cap of $237.4 million shortly after its launch, now stands at just $5.9 million. The total value locked (TVL) on the platform has also plummeted from a high of $52 million in early October 2023 to under $3.5 million, as reported by DefiLlama.
The protocol, native to Ethereum’s layer-2 Base, allows creators to monetize their content through tokenized shares or “keys.” Despite its initial hype, the platform has struggled with user dissatisfaction, especially following issues with the FRIEND airdrop in May.
Additionally, daily fees earned from the protocol have dropped below $1,000 since late July, and trading volume has also decreased significantly.
Friend.tech had previously announced plans to develop its own blockchain, “Friendchain,” further adding to the community’s confusion about its future direction. The platform’s X account later deleted its announcement, compounding the uncertainty.
This major move means friend.tech no longer has control over its smart contracts, leaving many wondering about the platform’s future direction.
Also Read: Friend.Tech Native Token Drops to $2.5 after Debut
