Friend tech’s Token Market Cap Falls from $233M to $6.3M: What’s Next?
Friend Tech, the crypto social media platform, has seen its native token (FRIEND) plummet after the team transferred the admin and ownership of its smart contracts to Ethereum’s null address. This move permanently relinquished any control over the smart contracts.
The transfer, which took place on September 8, was designed to prevent any future changes to the fees or functionality of the platform, according to a post made by Friend Tech on X (formerly Twitter). The token price dropped nearly 26% to $0.067 within 24 hours of the transfer, as reported by CoinGecko.
Why the Admin Transfer Happened
Friend Tech’s team stated that the decision to transfer the smart contract’s ownership to Ethereum’s null address—essentially a burn address used for irrecoverable tokens—was made to ensure that no one could make alterations to the platform’s smart contracts in the future. This move essentially “locks” the smart contract, preventing any future updates or modifications.
Community Reaction: “End of an Era”
In response to this drastic decision, Serpin Taxt, a prominent builder behind the blockchain reputation protocol Ethos, expressed disappointment. He posted on X, calling it the “end of an era” and mentioned that this was “not at all how [he] saw it playing out.”
The decision has left the Friend Tech community uncertain about the platform’s future, especially since it comes just three months after the company announced its plans to develop its own blockchain, Friendchain. This announcement, however, was later deleted from their X account, further fueling confusion and speculation about the platform’s future.
A Declining Ecosystem
Friend Tech has been experiencing friction with its users for several months, especially after many reported problems claiming the much-anticipated FRIEND airdrop back in May. These issues have compounded the platform’s struggles, with both its user base and token value in steady decline.
Initially, the platform saw its token’s market cap skyrocket to $233.6 million within the first four days of launch. However, as of September, the market cap has nosedived to just $6.3 million. The platform’s Total Value Locked (TVL), a critical metric of a DeFi platform’s success, has also dropped sharply. According to DefiLlama, the TVL peaked at $52 million in October 2023, but has since fallen to less than $3.5 million.
Daily fees earned on the protocol have similarly dropped. Since late July, earnings have consistently been below $1,000 per day, and the trading volume of FRIEND tokens has followed a similar pattern of decline.
What is Friend tech?
Friend Tech is an Ethereum Layer-2 platform built on Base, which allows content creators to monetize their work through tokenized shares or “keys.” These keys represent a user’s stake in the content or platform, offering creators an innovative way to engage and monetize their communities.
However, the platform is not without competition. Rival decentralized social platforms, including the Theta Network, Hive, and Decentralized Social, have been vying for market share in this rapidly growing niche.
What’s Next for Friend tech?
The platform’s future remains uncertain after these latest developments. With its community confused and token value falling, the next steps from the team will be critical in determining its survival in the competitive world of decentralized social media.
FAQ for the Friend tech Token and Smart Contract Change
What caused the sharp decline in Friend tech’s token value?
The value of Friend Tech’s native token plummeted by nearly 26% after the team transferred the admin and ownership of its smart contracts to Ethereum’s null address, effectively relinquishing control and preventing future changes to fees or functionality. This move created uncertainty among users, contributing to the sharp decline in the token price.
What is Ethereum’s null address, and why was it used by Friend tech?
Ethereum’s null address is a burn address used to permanently destroy tokens or relinquish control over smart contracts. Once tokens or ownership are transferred to this address, they cannot be recovered or altered. Friend tech transferred its smart contract ownership to this address to ensure that no future changes could be made to the platform’s fees or functionality.
How has the Friend tech community reacted to the smart contract transfer?
The community has reacted with confusion and concern. Some users were left puzzled by the move, particularly since it follows the announcement of a new blockchain project, “Friendchain.” The deletion of the announcement post from Friend tech’s X account has further fueled uncertainty about the platform’s future direction.
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