📰 Table Of Contents
The Decline of FRIEND Token on Friend.tech
The native token of Web3 social network Friend.tech, known as FRIEND, has experienced a significant drop in value following recent developments within the protocol.
Racer’s Intentions to Part Ways with Base
The decline came after one of the protocol’s co-founders, known as Racer, expressed intentions to part ways with Base, the Ethereum Layer-2 network developed by Coinbase that hosts the project. Racer offered a bounty for a successful migration off of Base without causing major issues for users.
Friend.tech Relationship With Base
Racer mentioned that the relationship between the Friend.tech team and Base has been tumultuous, with Farcaster investors misconstruing their project upon launch, leading to strained relationships within the Base community.
Jesse Pollak, the head of Base at Coinbase, expressed understanding and support for the Friend.tech team’s decisions amidst the situation.
Friend.tech’s Popularity and Challenges
Friend.tech, launched on August 10, 2023, has become one of the top decentralized applications (dApps) on the Base layer, attracting over 200,000 users and facilitating a trading volume exceeding $230 million.
Unique User Influence Model
The platform uniquely converts user influence into tradable tokens known as “keys,” allowing users to gain access to a creator’s attention or influence. This model has attracted not only cryptocurrency influencers but also NBA players and esports personalities.
Factors Contributing to Popularity
Friend.tech’s popularity was initially driven by the hype surrounding the Base network and further increased by the involvement of Paradigm, an investment firm connected to Coinbase.
Privacy Concerns and Response
The platform faced privacy concerns regarding potential user doxxing due to the link between Twitter profiles and Ethereum addresses. Friend.tech clarified that leaked information was from their public API, emphasizing user caution in protecting personal information.
Recent Uptick in Popularity
Despite challenges, Friend.tech has seen an uptick in popularity, with a significant increase in revenue on May 3, surpassing $500,000, after a period of lower revenue in previous months.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
