TL;DR
- Friend.Tech is shutting down. The development team transferred the smart contracts to a null address on Ethereum, locking the system and preventing future updates.
- The FRIEND token has dropped 28% in 24 hours and nearly 74% in a week, with a current value of $0.08259.
- Drastic Drop in Revenue and Token Value: Monthly revenues fell to just $71.
Friend.Tech, the Web3 social networking platform, is closing operations just one year after its successful launch.
The development team has taken a drastic measure. They transferred ownership of the platform’s smart contracts to a null address on Ethereum, which locks the system in its current state and prevents any future updates or additions of new features.
Admin and ownership parameters have been set to 0x000…000 to prevent any changes to their fees or functionality in the future.
This change does not affect the separate web client operated at https://t.co/YOHabcBL3H which will continue to function as is. No fees from either…
— friend.tech (@friendtech) September 8, 2024
This decision has had an immediate impact on the FRIEND token’s value, which has recorded a 28% drop in the last 24 hours, plummeting to $0.08259. Additionally, on a weekly scale, the loss in value is nearly 74%. A few days ago, its value was over $0.3.
The platform, which allowed users to trade tokens for access to exclusive content from influencers, experienced a sharp decline in revenue. Monthly revenues generated fell to just $71, a tremendous drop that has been a key factor in the development team’s decision to abandon the project.
The impact on investors has been equally severe. Machi Big Brother, a well-known crypto influencer, invested approximately 5,200 ETH, worth about $16.7 million in platoform’s tokens. However, with the current value of the token, his investment has reduced to just $0.7 million, resulting in a $16 million loss.
Friend.Tech Collapses Amid Rumors and Confusion
Friend.Tech launched on the Base network in August 2023 and quickly gained attention for its innovative model of selling “keys” for exclusive content. However, initial enthusiasm did not last, and the platform began to experience declines in trading activity.
The situation worsened following rumors of a possible migration to a new project, FriendChain, which caused confusion and further affected platform activity. Although attempts were made to regain interest, such as launching a new version and conducting a token airdrop, these efforts did not stabilize the platform’s operation. Fees generated since June 2024 amounted to around $60,000.
Friend.Tech joins a series of decentralized social platforms facing similar complications, with severe drops in user activity and daily active users. The situation reflects the challenges in the sector to maintain interest and participation in these projects.
