Good day everybody,
Welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at how the native token of Web3 social network Friend.tech, $FRIEND, suffered a substantial drop in value after one of the protocol’s co-founders expressed intentions to leave the Ethereum Layer-2 network BASE.
Friend.tech
A significant drop was experienced by the native token of Web3 social network Friend.tech. The token, known as $FRIEND, saw the decline following the announcement from one of the protocol’s co-founders, who goes by the pseudonym Racer, that they intend to part ways with the Ethereum Layer-2 network BASE, which was developed by Coinbase.
In a post on X Racer noted:
“System design bounty: If you can figure out a way to migrate friendtech off of Base without causing major issues for users, and it works well enough that we decide to use it, we will pay you $200K.”
Racer also noted how the relationship between the Friend.tech team and Base has been tumultuous. As part of another post the co-founder noted that Farcaster investors had misconstrued their project upon its launch and this resulted in a strained and difficult relationship with the Base Community. Due to this the team felt they were ostracized and disconnected from certain parts of the Base and Ethereum ecosystems.
The head of Base at Coinbase, Jesse Pollank, commented on the situation in a message which outlined their understanding of the issues Friend.tech has faced. Pollack acknowledged that the Friend.tech team had experienced feelings of isolation and disconnection while also going on to express his support for whatever direction they chose to go in. Pollack stated:
“I’ll be sad if the team decides to leave Base, but I also respect and will support whatever path – that’s the beauty of the decentralized, onchain, economy.”
These revelations led the value of the Friend.tech token to drop by 20%, going from $1.44 to $1.08 within the space of an hour on Sunday the 26th of May 2024. It continued to fall and hit a low of $0.98 but has since restabilised at $1.07 at the time of writing, according to Coingecko.
Friend.tech was launched on the 10th of August 2023 and has become one of the top decentralized applications (dApps) on the Base. To date it has attracted over 200,000 users and facilitated a trading volume exceeding $230 million. The platform is known for converting user influence into tradable tokens known as “keys.” These allow users to gain access to a creator’s attention or influence.
Not only cryptocurrency influencers had been drawn to Friend.tech, but also NBA players and esports personalities. With its appeal going beyond just the cryptocurrency community, one significant factor contributing to Friend.tech’s popularity was the hype surrounding the Base network. With the involvement of Paradigm, an investment firm associated with Coinbase, Friend.tech was able to further increase their potential.
The platform has faced some privacy concerns in the past, particularly regarding the potential for user doxing due to the link between Twitter profiles and Ethereum addresses. These concerns were addressed by Friend.tech as they noted the information deemed leaked was actually from their public API, showcasing the platform’s open nature while also highlighting the importance of user caution in protecting personal information. In other words, its up to the users themselves to ensure they remain anonymous if they so wish.
Have a great day.
Peace. CryptoGod-1.
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