- Rug Pull Allegations
- Analyst Comments
- Friend.tech's Response
Social media platform Friend.tech faces rug pull allegations after the team permanently relinquished control over the project’s smart contracts.
Rug Pull Allegations
On Sept. 8, the team behind Friend.tech announced that it had set the admin and ownership parameters to Ethereum’s null address. The team said that this prevents any future changes to their fees or functions. Following this announcement, the Friend.tech (FRIEND) token dipped by 26% just 24 hours after the announcement.
Analyst Comments
In a post on X, pseudonymous crypto analyst Waleswoosh said that 'Friend.tech rugged.' The analyst described the project as a 'Ponzi' as it evolved from a social finance (SocialFi) app into advanced trading. According to blockchain analytics platform Lookonchain, the Friend.tech team sold 19,477 Ether (ETH), worth about $52 million, from Dec. 2, 2023, to June 11, 2024. Lookonchain also highlighted that the token’s price had dropped 95% since its launch.
Friend.tech's Response
On Sept. 10, the team behind the SocialFi app posted an announcement, clarifying some concerns about the project. According to the team, they have no plans to discontinue the Friend.tech website application. The project also reiterated that their actions only guarantee that no future changes will be deployed on the layer-2 platform Base, which would create new fees. The team added that the actions don’t affect the app’s functionality, saying everything 'remains the same.'
As of now, the Friend.tech team has not provided additional comments on the matter. A significant part of the community remains concerned about the platform's future and its tokens.
