FRIEND Token Plummets After Transferring Smart Contract Ownership

• Friend.tech’s recently transferred its ownership over smart contracts to ETH’s null address.
• The move led to a significant dip in its token FRIEND, around 30% over the past day.

Friend.tech, the Web3 social media platform that once surged to prominence, experienced a dramatic downfall after its developers lost control of its smart contracts.

On September 8, the team transferred ownership of its smart contracts to Ethereum’s null address. The action was done to prevent future changes to the platform’s fees or functionality. The team clarified, that no fees from the smart contracts are directed to the development team’s multi-sig wallet.

Further, the move has led to a significant drop in the value of Friend.tech’s native token, FRIEND. It has dipped nearly 30% in the past 24 hours, now trading at $0.06, at the time of writing. 

The token’s market cap has drastically fallen from $233.6M shortly after its launch to just $6.3M. The total value locked (TVL) has also dropped from $52M in October 2023 to $3.47M, as per DefiLlama.

Friend.tech was launched in August 2023, on the Ethereum L-2 network, Base. By mid-September, the protocol’s daily earnings had surpassed those of Ethereum. Its top key was sold for 8.9 ETH, or $14,500.

Friend.tech Struggles with Airdrop and Blockchain Plans

Also the underwhelming airdrop and the launch of Version 2 failed to reignite the enthusiasm. The platform faced issues surrounding the token airdrop and confusion about its move to build its blockchain, “Friendchain,”. It was abandoned later.

Moreover, Serpin Taxt, a builder behind blockchain protocol Ethos, described the move as the “end of an era”. Notably, it was not how he envisioned the platform’s trajectory. 

With daily fees consistently below $1,000 since late July and a significant drop in trading volume, the platform’s revival now seems unlikely. The transfer of smart contract control leaves Friend.tech as a shadow of its former self, its innovative promise overshadowed by its rapid decline.

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