Friend.tech, the social media platform operating on Ethereum’s layer 2 Base chain, has seen its FRIEND token plummet by approximately 27% to $0.067 within the last 24 hours. This sharp decline follows a controversial move by the platform’s developers, who transferred the ownership of its smart contracts to Ethereum’s burn address on September 8.
The transfer was intended to “secure the contract from future modifications to fees or functionality,” as stated in a recent post on X (formerly Twitter) by Friend.tech. However, this decision has triggered significant confusion and concern among the platform’s community.
Since the transfer, the FRIEND token’s market capitalization has dwindled from an initial high of $237.4 million shortly after launch to a mere $5.9 million. The platform’s total value locked (TVL) has similarly dropped from $52 million in early October 2023 to under $3.5 million, according to DefiLlama.
Friend.tech, built on Ethereum’s layer-2 Base, allows content creators to monetize their work through tokenized shares or “keys.” Despite its early promise, the platform has faced increasing user dissatisfaction, particularly following complications with the FRIEND airdrop in May. Furthermore, daily protocol fees have fallen below $1,000 since late July, accompanied by a sharp drop in trading volume.
Adding to the confusion, Friend.tech had earlier announced plans to develop its own blockchain, “Friendchain,” but later deleted this announcement from its X account, deepening uncertainty about its future.
The recent smart contract transfer leaves Friend.tech without control over its own contracts, raising pressing questions about the platform’s trajectory and long-term viability.
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