Friend.tech Token Crashes 55% After Team Burns Control of Smart Contracts

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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 Ethereum’s null address. This decision permanently locks in the current functionality and fee structure of the platform’s 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. Ethereum’s null address functions as a burn address, meaning tokens or contracts sent there are irreversibly lost, with no way to retrieve them.

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 “end of an era,” adding that this outcome was “not at all how I saw it playing out.”

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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 “Friendchain.” Adding to the uncertainty, the platform’s 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 platform’s 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 protocol’s 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 isn’t the first sign of friction between Friend.tech’s 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 platform’s collaboration with crypto infrastructure firm Conduit on the development of Friendchain may further shake things up. This transition could involve leaving Ethereum’s Layer-2 solution, Base, where the platform is currently hosted. Past rumors of leaving Base had already triggered a drop in the FRIEND token’s price, signaling that any further changes could continue to impact its value.