TL;DR
- Friend.Tech’s Blockchain Transition: The socialFi app, Friend.Tech, is planning to launch its own blockchain, Friendchain, powered by its token, FRIEND. This move marks a significant departure from the Ethereum ecosystem and the layer-2 Base.
- Community Concerns and Token Role: The announcement has sparked controversy within the platform’s community, leading to demands for explanations from the team.
- Token Price Impact: Despite community concerns, the FRIEND token initially responded positively to the news with a 30% increase in price. However, it later dropped and stabilized at around $1,234, marking a 10% drop.
Friend.Tech, a socialFi app, is set to launch its own blockchain, powered by its token, FRIEND. This move signifies a definitive departure from the Ethereum ecosystem and the layer-2 Base.
We're pleased to be working with @conduitxyz on Friendchain, our own blockchain that uses $FRIEND as a fully transferable gas token.
We'll keep you up-to-date with all the info you need over the coming months as we build out this exciting new chapter. pic.twitter.com/HRa26vfFEX
— friend.tech (@friendtech) June 8, 2024
The announcement of the new cryptographic network, dubbed Friendchain, has stirred controversy within the platform’s community, leading to demands for explanations from the team.
Friend.Tech’s transition from Decentralized App to Friendchain
The developers of Friend.Tech are contemplating leaving the Ethereum ecosystem and the Base blockchain to launch its own cryptographic network.
The announcement came on Saturday, June 8th, from the official X profile of the app. The team will collaborate with infrastructural provider Conduit to build the first-level blockchain, “Friendchain”.
The Role of the FRIEND Token
The FRIEND token, distributed to the community via an airdrop in early May, will power Friendchain. It will serve as a fully transferable gas token. The migration from Base to the new blockchain is expected to occur in the first half of 2025.
Users of the SocialFi platform, which focuses on the tokenization and trading of X profiles, have expressed concerns about the necessity of launching a proprietary blockchain. Trader Dr.Kojipup asked the Friend.Tech team how Friendchain will add value to the decentralized app.
Higher Commission Costs
Some users have pointed out that the new blockchain, powered by FRIEND, will have higher commission costs compared to those currently seen on the Base network. This is especially relevant since Ethereum, the parent company, significantly lowered the gas cost on layer 2 after completing the Dencun update.
The Impact on the Price of the FRIEND Token
Despite the community’s requests for explanations about the decision to launch a new blockchain, the FRIEND token responded positively to the news, with its price increasing in the market.
During the first four hours after the company made its announcement, the crypto recorded a 30% increase. However, it later dropped and stabilized at around $1,234 only to continue its downward trend hours later. At the time of writing, the FRIEND token is trading at $0.6915, marking a 10% drop.
The surge in cryptocurrency value can be attributed to the introduction of a new network, where FRIEND has been designated as a gas token. As a result, speculators have eagerly bought into this currency, foreseeing its indispensability for accessing the Friend.Tech network.
Based on the latest data from Coinmarketcap, the token’s price has experienced a downward trend in the past week, resulting in a significant devaluation of 67%. This is partly justified by the launch of the airdrop to the community. The market capitalization of FRIEND stands at around $10.2 million, with a volume in the last 24 hours of $4.5 million.
