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Friend.tech token falls 26% as team transfers smart contract control

Friend.tech token falls 26% as team transfers smart contract control

GrafaGrafa2024/09/09 04:25
By:Mahathir Bayena

The token of the crypto social media platform Friend.tech (CRYPTO:FRIEND) has seen a sharp decline after its team transferred the admin and ownership rights of its smart contracts to Ethereum’s (CRYPTO:ETH) null address, effectively relinquishing any control over them.

This decision, made on September 8, was aimed at preventing any future modifications to the platform's fees or functionality, as stated by Friend.tech on X, formerly known as Twitter.

Following this move, the platform's token, FRIEND, plummeted by nearly 26% in the past 24 hours to $0.067, according to CoinGecko.

The Ethereum null address is a burn address, meaning that anything sent there is irrevocably destroyed and cannot be recovered.

The sudden change left many in the community, including Serpin Taxt of the blockchain reputation protocol Ethos, to view this as "the end of an era."

The decision to transfer control comes three months after Friend.tech announced plans to create its own blockchain, dubbed "Friendchain."

This left the community uncertain about the future direction of the platform.

Adding to the confusion, the platform’s X account deleted its announcement post shortly after making it.

User sentiment towards Friend.tech worsened when issues arose with claiming the much-anticipated FRIEND airdrop in May.

Despite initially amassing a $233.6 million market cap within four days of its launch, the token's market cap has since dwindled to $6.3 million.

Moreover, the total value locked (TVL) on the platform has fallen from its all-time high of $52 million in October 2023 to less than $3.5 million now, as per DefiLlama.

Daily fees earned by the protocol have consistently been below $1,000 since late July, and the trading volume of FRIEND has similarly declined.

Friend.tech, based on Ethereum's layer 2 Base, allows creators to monetise their content through tokenised shares or "keys."

However, with recent challenges and a drop in user confidence, its future remains uncertain.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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