Friend.Tech Gave up Control of Smart Control, Sees Token Tank Further

Friend.Tech, the Web3 social network known for allowing users to trade tokens for 'keys' to access the feeds of influential individuals, has been effectively shuttered just a year after its successful launch.

On 8 September, the platform's developers announced on X (formerly Twitter) that they had executed a function within the platform's smart contracts, transferring control to Ethereum's null address.

This action permanently locks the system, preventing any future modifications or feature implementations.

Following this move, the platform's token, FRIEND, experienced a sharp decline, plummeting nearly 30% to $0.06086 at the time of writing according to CoinMarketCap.

The transfer to Ethereum's null address—a burn address that permanently destroys tokens—means that any assets sent there are irrevocably lost.

This development marks a significant turning point for Friend.Tech, with many in the blockchain community, including Serpin Taxt of the Ethos protocol, calling it the "end of an era.”

As the platform now functions in a frozen state, the prospect of a revival seems increasingly remote.

Friend.Tech Fraught with Problems

The recent smart contract change follows Friend.Tech's earlier announcement to build its own blockchain, "Friendchain," which left its community uncertain about the protocol's future direction.

The subsequent deletion of this announcement from the platform's X account only deepened the confusion.

Tensions between Friend.Tech's team and its users escalated when many encountered issues claiming the highly anticipated FRIEND airdrop in early May.

After the protocol launched Version 2 (v2) last May, the price of its native token dropped sharply, fuelled by Racer's public statement about potentially leaving the Base blockchain.

Although the FriendChain plans were ultimately scrapped, with developers deciding to stay on Base, the damage was done.

While the V2 launch and the airdrop temporarily revived user interest, protocol fees began to stagnate shortly thereafter.

Since June, Friend.Tech has generated only about $60,000 in fees, signalling a significant slowdown in activity.

Friend.Tech: Token Drop, Market Cap Drop, TVL Drop, Slow Death Ahead Likely

Friend.Tech's token, which initially surged to a market cap of $233.6 million within four days of its launch, has now plummeted to less than $9 million, according to CoinMarketCap.

The platform's total value locked (TVL) has similarly declined, dropping from a peak of $52 million in October 2023 to under $3.5 million, as reported by DefiLlama. https://defillama.com/protocol/friend.tech#information

Daily fees from the protocol have consistently fallen below $1,000 since late July, mirroring the sharp decline in FRIEND trading volume.

With the recent revocation of contract ownership, any potential revival appears increasingly unlikely, as this move effectively blocks any new team from taking over and adding features to the platform.

The platform's decline is further underscored by the lack of meaningful updates on X since July.

By August, the only regular updates were the daily "Top 5 trending clubs of the day," signalling a shift from innovation to mere maintenance.

Given these trends, it seems probable that Friend.Tech may fade into obscurity.