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Friend.tech Team Discontinues Project, Transfers Control of Platform to Burn Address – What Happened?
The outlook for friend.tech, a project on Base previously regarded as a frontrunner in the emerging “SocialFi” crypto domain, is uncertain following the apparent abandonment of the project by the friend.tech team, who transferred control of the platform to a burn address.
Admin and ownership settings have been adjusted to 0x000…000 to prevent any modifications to their fees or functionalities in the future.
This alteration does not impact the independent web client available at https://t.co/YOHabcBL3H, which will continue to operate as it currently does. No fees from either…— friend.tech (@friendtech) September 8, 2024
In an X post dated September 7, the friend.tech team stated that this transfer of authority would “prevent any changes to their (the platform’s) fees or functionality in the future.”
However, this has been broadly interpreted by the crypto community as an indication that the friend.tech team has abandoned the project, as future development is now unfeasible.
X user VietnamPenguin referred to the exit of the friend.tech team as an “excellent rug” orchestrated by the developers and the crypto venture capital firm Paradigm.
This was an excellent ‘rug’ by the devs and @paradigm. For those who are unaware, the entire ‘hype’ surrounding @friendtech began and persisted largely due to investments from Paradigm.
It was solely this that enabled developers to amass over $60 million in fees throughout the year.… https://t.co/3FkpYgNV6k pic.twitter.com/jaeWzXr5pC—
VietnamPenguin
(@VietnamPenguin) September 9, 2024
(@VietnamPenguin) September 9, 2024VietnamPenguin elaborated that the investments from Paradigm were the driving force behind the excitement that allowed friend.tech to generate over $60 million in fees over the past year.
Additionally, Paradigm withdrew prior to the friend.tech developers, opting out of their allocation in the FRIEND token launch earlier this year.
Friend.tech developers seemed to try to alleviate concerns regarding a rug pull in a new X post on September 9.
We acknowledge your inquiries about https://t.co/YOHabcBL3H. Here’s what you need to know:
1. We have no intentions to close or discontinue the https://t.co/YOHabcBL3H web app.
2. The actions outlined below ensure that no future modifications can be made to smart contracts deployed on Base which… https://t.co/FK9omMDG7X— friend.tech (@friendtech) September 9, 2024
The official friend.tech X account clarified that they do not plan to terminate the friend.tech web app, and the transfer of admin and ownership settings does not affect the web app’s functionality.
Friend.tech Team Abandons Project – How Much Did They Make?
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According to a DeFi Llama dashboard, the friend.tech platform has accrued $63.4 million in fees since its launch in August 2023.
As reported by Arkham Intelligence, the wallet linked to the friend.tech development team holds just under $200,000 in various tokens.
However, over the past eight months, this wallet has transferred $36 million in Ethereum (ETH) to Coinbase.
Another wallet associated with friend.tech also deposited $16 million worth of Ethereum to Coinbase approximately nine months ago.
What Next for Friend.tech?
Leading up to the abandonment of the project by the friend.tech team, the platform had experienced stagnant activity for several months.
After generating as much as $2 million daily in September 2023, the project’s revenues barely surpassed $2,000 per day in July and August 2024, according to DeFi Llama.
Meanwhile, the FRIEND token launched by the project in May continues to trend towards zero.
After briefly reaching a peak of $3 immediately following its launch in May, FRIEND was last recorded at $0.08, according to DEXTools.
A 99% drop in daily fees and in the token price strongly indicates that friend.tech is no longer viable.
With the friend.tech team having abandoned the project and no alterations to the protocol ever possible, a revival seems unlikely.
The post Friend.tech Team Abandons Project, Transfers Platform Control to Burn Address – What’s Going On? appeared first on Cryptonews.
