Friend.tech Facing Challenges
The native token of Web3 social network Friend.tech, known as FRIEND, has recently faced a significant drop in value. This decline was triggered by the decision of one of the protocol’s co-founders, identified as Racer, to distance the project from Base, the Ethereum Layer-2 network developed by Coinbase that serves as its host. In a post on X, Racer challenged the community with a bounty to find a solution for migrating Friendtech off Base, highlighting the potential reward of $200K.
According to Racer, tensions between the Friend.tech team and Base have been escalating. Misunderstandings with Farcaster investors during the project launch left the team feeling isolated from parts of the Base and Ethereum ecosystems. In response, Jesse Pollak, the head of Base at Coinbase, expressed empathy towards Friend.tech’s predicament, emphasizing the decentralized nature of the ecosystem and pledging support for the team’s decisions.
Friend.tech’s Rise and Recent Developments
Friend.tech, introduced on August 10, 2023, quickly became a prominent decentralized application on the Base layer, with a user base exceeding 200,000 and a trading volume surpassing $230 million. The platform’s innovative approach of converting user influence into tradable tokens called “keys” has attracted diverse personalities, including cryptocurrency influencers, NBA players, and esports figures, broadening its appeal.
The involvement of Paradigm, an investment firm linked to Coinbase, bolstered confidence in Friend.tech, considering its association with the Base network. Despite initial privacy concerns related to potential doxxing risks due to Twitter-Ethereum address correlations, Friend.tech clarified that leaked information originated from their public API. The platform’s transparency underscored the significance of users safeguarding personal data.
Recent data from Dune analytics indicates a significant revenue surge for Friend.tech, surpassing $500,000 on May 3, following a period where revenue had dipped to under $20,000 in previous months.
