As a seasoned researcher with a keen eye for trends and patterns in the blockchain space, I’ve seen my fair share of projects rise and fall. Friend.Tech’s story is one that seems all too familiar – a flashy start, a promising model, and ultimately, a fizzle-out.
It appears that Friend.Tech, the Web3-based social media platform where users can exchange tokens to gain access to popular figures’ feeds, might be shutting down a year after its successful debut.
On September 8th, the developers handed over management of the smart contracts to Ethereum‘s zero address, effectively freezing the system in its current form. This move prohibits any future modifications or enhancements.
FRIEND Token Plummets 26%
In a post by the team on X, it was clarified that the administrative and ownership settings have been adjusted to “0x000…000” to ensure no modifications can be made to the associated fees or features moving forward.
1) Additionally, it was made clear that the team behind Friend.Tech won’t receive any funds from this source. Despite the fact that the platform continues to function, the lack of control over its smart contracts significantly reduces the chances of new functionalities being added or existing ones being modified.
After the announcement, data from CoinGecko indicates that the FRIEND token has decreased by 26.4%. At present, it’s being traded at $0.05942. Additionally, it reached its lowest point ever on September 9, hitting $0.05748.
Meanwhile, investors have also felt the impact of FRIEND’s decline. Lookonchain reported that crypto influencer Machi Big Brother, who invested approximately 5,200 ETH worth around $16.7 million to acquire 11.1 million of the tokens, is now facing a $16 million loss as its value has plummeted to just $0.7 million.
Friend.Tech’s Rise and Fall
In August 2023, Friend.Tech was introduced with a unique approach of offering “keys” to exclusive content from influencers. It quickly garnered attention and initial success. However, as time passed, user engagement on the platform started decreasing. A major setback occurred when Racer hinted at departing from the Base blockchain for a fresh venture called “FriendChain.
Despite ultimately scrapping these proposals, the initial announcement created a wave of perplexity, from which the platform’s engagement never fully regained its previous momentum. To reignite enthusiasm, Friend.Tech unveiled Version 2 and held a token distribution event, momentarily luring users back.
Despite experiencing a temporary revival, this surge didn’t maintain prolonged user interaction, as the accumulated protocol fees amounted to roughly $60,000 since June 2024. Recent findings suggest that platform fees have dwindled to a mere $71, potentially prompting the team’s decision to relinquish control.
On various prominent decentralized social networks like Farcaster and Lens, the situations bear a striking resemblance. An analysis by one expert on Dune reveals that the number of new users on Farcaster has significantly decreased, falling from a peak of 15,000 in February to approximately 650 as of now.
Furthermore, there’s been a significant decrease – around 40% – in the number of daily active users on our platform. This drop comes after a high of 100,000 users in July, leaving us with approximately 60,000 users at the moment.
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2024-09-09 16:18