Friend Token Drops 27% Amid Smart Contract Control Shift

Smart Contract Transfer Causes 27% Decline in Friend Token

Crypto social media platform Friend.tech has witnessed a significant drop in its token value, as the price of FRIEND plummeted by nearly 27% to $0.06244 within 24 hours. This sharp decline follows a pivotal move by the platform’s team on September 8, where they transferred ownership of its smart contracts to Ethereum’s null address. This decision has sparked confusion and concern within the community, as the platform has now permanently relinquished control over its contracts.

Friend.tech's Bold Move and the Impact on FRIEND Token

Friend.tech, built on Ethereum's layer 2 Base chain, has made headlines with its recent move to transfer the admin rights of its smart contracts to a null address. This irreversible action was reportedly taken to ensure that the platform's fees and functionality remain unchanged in the future. The announcement was made on X (formerly Twitter), but instead of providing clarity, it has left the community in a state of confusion.

The FRIEND token, which once boasted a market cap of $237.4 million shortly after its launch, has seen a dramatic fall to just $5.9 million. The total value locked (TVL) on the platform, which peaked at $52 million in early October 2023, has now dropped to below $3.5 million, according to data from DefiLlama. These figures highlight the extent of the decline that has accompanied the platform's recent developments.

Adding to the uncertainty, Friend.tech had announced plans to develop its own blockchain, known as "Friendchain," just three months ago. However, the deletion of this announcement from its X account has only deepened the community's concerns about the platform's direction.

The platform, which allows creators to monetize their content through tokenized shares or "keys," has struggled with user dissatisfaction in recent months. Many users reported issues with claiming the highly anticipated FRIEND airdrop in early May, further straining the relationship between the platform's team and its user base.

Conclusion

Friend.tech's recent decision to transfer ownership of its smart contracts to a null address has led to a dramatic drop in the value of its FRIEND token and left the community in a state of uncertainty. With a strong decrease in market cap and total value locked, coupled with user dissatisfaction and a lack of clear communication, the platform's future direction remains unclear. As Friend.tech navigates this challenging period, the broader crypto community will be watching closely to see how it adapts to these changes and what impact they will have on its long-term viability.

Also Read: Crypto Market This Week Volatile Amid FOMC, Telegram saga