Friend.tech Relinquishes Control of Smart Contracts, FRIEND Token Plummets 28%

Friend.tech, the once-hyped Web3 social media platform, has made a drastic move by transferring ownership of its smart contracts to Ethereum’s null address, effectively relinquishing all control over them. This decision, announced on September 8, has sent shockwaves through the crypto community and resulted in a sharp decline in the platform’s native token, FRIEND.

FRIEND Token Price and Platform Activity Plummet

Following the announcement, the FRIEND token experienced a dramatic 28% drop, trading at $0.062 according to CoinGecko. This represents a significant fall from grace for a token that once boasted a market cap of $233.6 million just days after its launch. Currently, FRIEND’s market cap stands at less than $6 million.

The platform’s total value locked (TVL) has also seen a steep decline, falling from an all-time high of $52 million in October 2023 to less than $3.5 million now, as reported by DefiLlama. Daily fees earned by the protocol have consistently remained below $1,000 since late July, indicating a significant drop in user activity.

Implications of Friend.tech’s Smart Contract Transfer

By transferring control to Ethereum’s null address, Friend.tech has permanently locked its current system in place. This means no future changes can be made to fees or functionality, which the team claims was done to “prevent any changes to their fees or functionality in the future.”

While the web client will continue to operate as usual, this move effectively prevents the implementation of new features, raising questions about the platform’s ability to evolve and compete in the rapidly changing Web3 landscape.

Community Reaction and Ongoing Challenges

The crypto community has expressed mixed reactions to this development. Serpin Taxt, a builder behind blockchain reputation protocol Ethos, described it as the “end of an era” and “not at all how I saw it playing out.”

This latest development comes after a series of challenges for Friend.tech, including:

1. Confusion over the announced development of “Friendchain”
2. Issues with the FRIEND token airdrop in May
3. Declining daily fees and trading volumes since July

Future Uncertain

With the renunciation of control over its smart contracts, Friend.tech’s future remains uncertain. The platform, which allows creators to monetize content through tokenized shares or “keys,” now faces significant hurdles in maintaining user engagement and implementing new features.

As the Web3 social media landscape continues to evolve, Friend.tech’s bold move raises important questions about the balance between decentralization and platform development in the crypto market.