As a seasoned analyst with over two decades of experience in financial markets, I have seen my fair share of market manipulation and outright fraudulent activities. The Friend.tech saga seems to be another example of such unscrupulous practices that have left investors feeling betrayed and disillusioned.
Friend.tech is accused of rug-pulling its users as it has liquidated $52 million worth of ETH.
The group behind the development of the Friend.tech protocol, initially hailed as the potential future leader in social platforms, currently faces allegations of abandoning their projects’ investors (rug-pulling). Furthermore, there are claims that the team has been operating a pyramid scheme, similar to a Ponzi scheme.
Anonymous cryptocurrency analyst @waleswoosh provided a detailed analysis on Friend.tech, pointing out the team’s actions over several months to support their claims, starting with the assertion that “Friendtech is a rug pull.” They labeled it as a Ponzi scheme and explained how it transformed from a Web3 social media platform into an “advanced trading” protocol. Furthermore, they noted that Friend.tech altered the term for their ‘shares’ concept to ‘keys.’ An article in Forbes reported on this, explaining that the protocol changed the term due to regulatory uncertainties surrounding cryptocurrency. The keys, or shares, represent portions of user profiles that other users purchase to send messages to them. These keys generate profits through trading fees.
As Friends.tech became incredibly popular and went viral, its creators jumped on the bandwagon and earned massive profits. At the same time, they accumulated an impressive total of around “60 million USD in fees.” According to @waleswoosh, the team had promised key holders exciting developments, such as splitting half of the airdrop amount among them.
As Friends.tech gained widespread popularity, users initially showed great enthusiasm. However, over time, their interest waned, leading to a decline. Consequently, the native asset FRIENDS and the platform’s keys have seen a significant drop in value.
Over that specific period from December 2nd, 2023, to June 11th, 2024, I’ve been consistently selling approximately 19,477 Ether, which equates to a value of around $52 million, on behalf of the platform.
Friend.Tech Responds
Friend.tech addressed the concerns of their users by stating clearly, “We have no intention of closing or discontinuing our friend.tech web application.” Additionally, they noted that no more alterations will be made to their contracts, as previously announced. This previous announcement explained that Friend.tech’s team has transferred the ownership parameters to the Ethereum address containing no value (null address).
Nevertheless, Friend.tech’s X account mentioned, “Everything you know and use remains the same.”
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2024-09-15 00:31