Social Platform Friend.tech Announces Migration to Friendchain Network

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Ruholamin Haqshanas

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Ruholamin Haqshanas

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Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

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June 8, 2024

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Web3 social network Friend.tech has decided to part ways with Base, the Ethereum Layer 2 network operated by Coinbase, as it prepares to migrate to its own blockchain called Friendchain.

The migration is being carried out in collaboration with Conduit, a blockchain infrastructure provider.

While no specific timeline was provided in the announcement made on X, Friend.tech assured its users that they will be kept informed about the progress of the blockchain development in the coming months.

The decision to migrate to Friendchain doesn’t come as a complete surprise, as Friend.tech co-founder Racer had previously made public comments hinting at the team’s desire to move away from Base.

Racer’s remarks had caused a 20% drop in the price of Friend.tech’s native token at the time.

Users Question Friend.tech’s Plan to Migrate to New Chain

The plans to develop their own blockchain have raised questions among users who are curious about the value proposition of a social-focused chain.

One crypto trader, Dr. Jojipup, asked this question in response to Friend.tech’s announcement, while also expressing an interest in understanding the collaboration with Conduit.

Friend.tech clarified that it will utilize its native token, Friend (FRIEND), as a “fully transferable gas token.”

Concerns were raised about potential higher gas fees on Friendchain compared to Base, which is often referred to as a “low-cost” Ethereum Layer 2 solution.

However, despite these concerns, the announcement sparked interest among traders, leading to a significant spike in the price of Friend immediately afterward.

Within just 20 minutes of the announcement, the price of Friend surged by 64%, reaching $1.31.

However, the price quickly retreated to $0.89 within the hour, as reported by CoinMarketCap.

It’s worth noting that this significant price fluctuation comes just a month after Friend.tech launched the token, accompanied by a major airdrop.

Shortly after the launch of the Friend.tech airdrop on May 3, a sizable holder known as “Murphys1d” sold over 55,000 of the newly-issued Friend tokens.

Friend.tech’s Popularity Sees Uptick After Decline

Friend.tech, launched on August 10, 2023, has become one of the top decentralized applications (dApps) on the Base layer, attracting over 200,000 users and facilitating a trading volume exceeding $230 million.

The platform uniquely converts user influence into tradable tokens known as “keys,” allowing users to gain access to a creator’s attention or influence.

The model has attracted not only cryptocurrency influencers but also NBA players and esports personalities, broadening its appeal beyond the crypto space.

One significant factor contributing to Friend.tech’s popularity was the hype surrounding the Base network, a Layer 2 solution associated with Coinbase.

The involvement of Paradigm, an investment firm connected to Coinbase, further increased confidence in Friend.tech’s potential.

However, the platform has also faced privacy concerns, particularly regarding the potential for user doxxing due to the link between Twitter profiles and Ethereum addresses.

Friend.tech has addressed these concerns by clarifying that the information deemed leaked was actually from their public API, showcasing the platform’s open nature while also highlighting the importance of user caution in protecting personal information.

Nevertheless, Friend.tech has seen an uptick in popularity as of late.

According to a Dune analytics dashboard, the project raked in more than $500,000 in revenue on May 3.

This came as its revenue had recently fallen to under $20,000 over the past couple of months.