Friend.Tech, a once-promising crypto social media platform, has abruptly shut down after transferring its smart contracts to Ethereum’s burn address. This move effectively relinquishes control from the development team and renders future updates or bug fixes impossible.
Token Price Crashes After Burn
On September 8th, the Friend.Tech team transferred ownership of their smart contracts to the Ethereum null address, a permanent black hole for cryptocurrency. This triggered a dramatic price drop for the platform’s native token, FRIEND. The token plummeted over 36% within 24 hours, plummeting from $0.061 according to CoinGecko.
Launched in August 2023, Friend.Tech experienced a meteoric rise. The platform’s FRIEND token boasted a market cap of $233.6 million shortly after its debut. However, by the time of its shutdown, the market cap had shrunk to a mere $6 million, reflecting a devastating 98% decline.
Friend.Tech offered a unique proposition: Users could purchase “keys” from X (formerly Twitter) influencers to access exclusive content and benefits. The value of each key fluctuated based on the influencer’s popularity and demand. At its peak, the platform processed around $10 million in daily trade volume, attracting crypto enthusiasts and non-crypto influencers alike.
Privacy Concerns and Waning Momentum
However, Friend.Tech’s success was short-lived. In December 2023, the platform’s revenue plummeted 90% compared to its September highs. Additionally, a leaked database revealed user wallet addresses and permissions granted to Friend.Tech for posting on X, sparking privacy concerns.
The Future of SocialFi
Friend.Tech’s demise raises questions about the future of SocialFi platforms, which aim to combine social media with decentralized finance. Although Friend.Tech initially inspired a wave of similar projects, the industry is facing challenges. Other Web3 social media platforms have struggled to retain users and maintain momentum.
Despite the current slowdown, the growing regulatory scrutiny on traditional social media platforms and the increasing interest in Web3 suggest a potential future for SocialFi platforms. As the industry evolves, overcoming user trust issues and ensuring robust security measures will be crucial for its long-term success.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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