Friend.tech has relinquished control of certain smart contracts by transferring them to a null address, a decision that is irreversible.
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The cryptocurrency token associated with the social media platform friend.tech has experienced a significant decline following the decision by its team to transfer the administration and ownership of its smart contracts to Ethereum’s null address. This action effectively removes any control the team had over these contracts on a permanent basis.
On September 8, the team announced that this transfer was executed to ensure that there would be no future alterations to the platform’s fees or functionalities. This statement was shared on X, emphasizing their commitment to maintaining the current structure of the platform.
In the wake of this transfer, the value of the platform’s token, FRIEND, has fallen sharply, recording a nearly 26% decrease within a 24-hour period, bringing its price down to $0.067, as reported by CoinGecko. This substantial drop reflects the market’s reaction to the loss of administrative control over the platform’s smart contracts.
The null address in Ethereum serves as a designated burn address, specifically intended for the deliberate elimination of tokens. Any tokens dispatched to this address are permanently lost, with no possibility of recovery or reuse for those assets.
Serpin Taxt, a developer associated with the blockchain reputation protocol Ethos, expressed on X that the recent developments concerning friend.tech mark the conclusion of a significant era, stating that the situation unfolded in a manner he had not anticipated.
This alteration in the smart contract occurs three months following friend.tech’s announcement regarding the creation of its own blockchain, dubbed “Friendchain.” This decision has left the community in a state of uncertainty regarding the future trajectory of the protocol.
The X account associated with Friend.tech subsequently removed its announcement post, contributing to the prevailing uncertainty among users. This action has led to increased speculation and confusion regarding the platform’s intentions and future developments.
Tensions between the Friend.tech team and its user base escalated as numerous individuals reported problems related to the highly anticipated FRIEND airdrop that took place in early May. These complaints have highlighted a growing disconnect between the platform’s promises and the actual experiences of its users.
The FRIEND token experienced a remarkable surge, achieving a market capitalization of $233.6 million within just four days of its launch; however, this figure has since plummeted to a mere $6.3 million. Additionally, the total value locked in Friend.tech has dramatically decreased from its peak of $52 million in early October 2023 to below $3.5 million, according to data from DefiLlama.
Since late July, the daily earnings generated from the protocol have persistently remained under $1,000, paralleling a notable decline in FRIEND trading volume. This trend indicates a significant downturn in both the financial performance of the protocol and the trading activity associated with FRIEND tokens.
Friend.tech operates on the Ethereum layer 2 Base, providing creators with the opportunity to monetize their content via tokenized shares, commonly referred to as “keys.” Competing platforms in this space include the Theta Network, Hive, and Decentralized Social, each offering alternative methods for content monetization and engagement.
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