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The token for decentralized social media platform Friend.tech has faced a dramatic plunge after the team transferred control of its smart contracts to Ethereumâs null address. This decision permanently locks in the current functionality and fee structure of the platformâs smart contracts, effectively cutting off any future administrative control.
The token, FRIEND, saw a sharp 55% decline in value in the past 24 hours, dropping to $0.06, as reported by CoinMarketCap. Ethereumâs null address functions as a burn address, meaning tokens or contracts sent there are irreversibly lost, with no way to retrieve them.Â
Community Reactions
The abrupt transfer sparked varied reactions across the blockchain community. Serpin Taxt, a key figure behind blockchain reputation protocol Ethos, described the move as the âend of an era,â adding that this outcome was ânot at all how I saw it playing out.â
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The decision has sparked confusion within the Friend.tech community, coming just three months after the platform had announced plans to build its own blockchain, dubbed âFriendchain.â Adding to the uncertainty, the platformâs official X account deleted the announcement, leaving users unsure about the future direction of the protocol.
A Rocky Road Ahead?
The Friend.tech token had garnered significant attention following its launch, amassing a market cap of $233.6 million within four days. However, that figure has since dropped to just $6.3 million.
According to DefiLlama, the platformâs total value locked (TVL) has plummeted from its all-time high of $52 million in October 2023 to less than $3.5 million. Additionally, the protocolâs daily fees have consistently remained below $1,000 since late July, signaling a significant downturn in user engagement and trading activity.
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This isnât the first sign of friction between Friend.techâs team and its users. Earlier in May, many users faced issues related to the highly anticipated FRIEND airdrop, adding to tensions. With the recent move, doubts have grown over whether Friend.tech can sustain its community as the protocol navigates these choppy waters.
Meanwhile, the platformâs collaboration with crypto infrastructure firm Conduit on the development of Friendchain may further shake things up. This transition could involve leaving Ethereumâs Layer-2 solution, Base, where the platform is currently hosted. Past rumors of leaving Base had already triggered a drop in the FRIEND tokenâs price, signaling that any further changes could continue to impact its value.
