As a seasoned crypto investor with a knack for spotting potential and navigating market turbulence, I must admit, the recent events surrounding Friend.tech have left me scratching my head. The sudden drop of the FRIEND token and the mysterious transfer of smart contracts ownership to Ethereum’s null address has sent ripples of uncertainty through the community.
On Friend.tech, a social media site running on Ethereum‘s layer 2 Base chain, its token, FRIEND, took a steep dive, dropping approximately 26% to $0.067 over the past day. This steep decrease comes after the platform’s team made a notable decision to transfer the control of their smart contracts to Ethereum’s empty address on September 8th.
As stated by Friend.tech on X (previously known as Twitter), the transfer was designed to ensure that no alterations would be made to their fees or features in the future. Nevertheless, this move has ignited a wave of bewilderment and worry among the community.
Initially booming with a market capitalization of $237.4 million immediately following its release, the FRIEND token now holds a value of only $5.9 million. Moreover, the total worth locked (TVL) on the platform has drastically dropped from an initial peak of around $52 million in early October 2023 to less than $3.5 million as reported by DefiLlama.
On Ethereum’s second layer, known as its Base, there’s a protocol that lets creators earn money by offering tokenized pieces or “keys” of their content. While it initially generated much excitement, the platform has faced challenges due to user discontent, particularly after problems with the FRIEND airdrop in May.
As an analyst, I’ve observed a noticeable downturn in our daily earnings from the protocol, with figures dipping below the $1,000 mark since late July. Moreover, the trading volume has witnessed a substantial decrease as well.
Previously, Friend.tech unveiled intentions to create a unique blockchain named “Friendchain,” causing some perplexity within the community regarding their strategic path. Subsequently, the post announcing this development on the X account was removed, intensifying the ambiguity surrounding their future plans.
With this significant shift, friend.tech no longer holds authority over their smart contracts, causing speculation among users regarding the potential trajectory of the platform.
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2024-09-09 08:38