Friend.Tech, a Web3 social network known for allowing users to trade tokens for access to influential individuals' feeds, faced a major setback.
Revocation of Control
On September 8, the platform's developers executed a function that transferred ownership of its smart contracts to Ethereum’s null address. This action effectively locks the system, halting any future changes. According to an announcement on X (formerly Twitter), 'Admin and ownership parameters have been set to 0x000...000 to prevent any changes to their fees or functionality in the future.' This change means that while the web client at Friend.Tech will continue to operate as usual, no new features or updates can be implemented.
Market Reaction and Performance
Friend.Tech, built on Ethereum’s layer-2 Base, initially garnered significant attention for its innovative approach to monetizing content through tokenized shares or 'keys.' However, the platform faced several issues, including user dissatisfaction following problems with the FRIEND airdrop in May and a drop in daily fees earned from the protocol to below $1,000 since late July. Trading volume also saw a substantial decline. The platform’s token, FRIEND, has experienced a dramatic decrease in value, falling nearly 52% to $0.067 in the past 24 hours. The token’s market cap, which reached $233.6 million within the first four days of its launch, has plummeted to $909k. Additionally, the total value locked (TVL) on Friend.Tech has decreased from an all-time high of $52 million in early October 2023 to less than $3.5 million.
Future Prospects and Industry Context
Friend.Tech had previously announced plans to develop its own blockchain, 'Friendchain,' adding another layer of uncertainty about its future. However, this announcement was later deleted, further compounding confusion. The revocation of control comes amid a broader trend of declining user engagement on decentralized social media platforms. Farcaster and Lens Protocol, which initially promised to revolutionize social interactions through blockchain technology, have also seen a significant drop in active users. Many experts argue that the issue lies in the lack of significant improvements in user experience and interface compared to existing Web2 platforms.
The future of Friend.Tech remains uncertain amid growing skepticism about decentralized social media. These developments highlight the need for meaningful improvements in user experience for these platforms to succeed.
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