Friend.Tech Assures 'No Shutdown' Despite Earning Nearly $40 Million; FRIEND Token Surges 70%

Friend.Tech, a previously popular SocialFi platform, has come under scrutiny after announcing it would relinquish control over its smart contracts. The move, revealed on September 8, was intended to prevent future modifications or updates that could alter fees or functionality. This decision has sparked accusations of a "soft rug" pull from parts of the community.

Christian2022.eth, a prominent figure in the space, voiced strong criticism. He expressed disappointment at how the platform’s team, particularly founder Racer, seemed to be abandoning their commitment to decentralised social visions. He lamented the financial losses incurred, stating, “I have lost $500,000 on @friendtech, despite my profits coming from those who believe in decentralised social power.”

Read more: Once Popular Friend.Tech Relinquishes Control of Smart Contracts as Token Tanks: Revival Unlikely, Slow Death Ahead?

Official Response from Friend.Tech

In response to the backlash, Friend.Tech reassured users that the site would remain operational and that current functionalities would not be affected. The team explained that relinquishing contract control was meant to ensure no future changes would increase costs or affect the deployed smart contracts on Base.

Despite these assurances, the response from the community has been mixed. Grail.eth, a user with 79,000 followers, suggested that the move was a way for the team to distance themselves from the project while continuing to run it. Other commentators, like flippen, argued that maintaining the site without active development or potential for new features is not preferable to a complete shutdown.

Despite the controversy, Friend.Tech has reported substantial profits. Data from Dune’s 21co panel indicates that since its launch, the platform has generated approximately $79.9 million in fees. Of this, $39.98 million has been allocated to creators, leaving the Friend.Tech team with about $39.92 million.

Read more: Friend.tech Developers Relinquish Control, Signaling End of Platform Development

Amidst the turmoil, the platform’s token, $FRIEND, experienced a significant price increase. Following a dip, the token surged by over 70%, peaking at $0.09831 before slightly correcting to $0.09107. This reflects a 37.7% rise in the past 24 hours, suggesting some market resilience despite ongoing concerns.