On Sept. 8, the crew behind the decentralized social media protocol Good friend.Tech transferred control of its good contract to Ethereum’s null handle, successfully relinquishing control of the mission one yr after its profitable launch.
In a social media put up on X, the crew stated:
“Admin and ownership parameters have been set to 0x000…000 to prevent any changes to their fees or functionality in the future.”
Regardless of this, the online shopper at Good friend.Tech will proceed to function as common. The crew additionally clarified, “No fees from either the smart contracts or Friend.Tech currently go to the dev team multisig.”
Following the announcement, the platform’s native token FRIEND plummeted by over 47% in 24 hours, reaching an all-time low of $0.06026, based on CryptoSlate information at press time.
Whereas the crew has not offered a transparent purpose for this transfer, CryptoSlate’s evaluation of on-chain information highlights the platform’s steep decline in reputation.
Friendtech’s decline
Good friend.Tech, launched in August final yr on Coinbase’s Layer 2 community Base, initially gained speedy traction in the crypto group.
By September 2023, the protocol’s each day earnings surpassed Ethereum’s, and its prime keys fetched excessive costs. Across the interval, the platform additionally raised an undisclosed seed spherical from crypto VC agency Paradigm.
Nevertheless, the hype pale because the platform struggled to take care of momentum. It confronted a number of challenges, together with sim swap assaults and mismanaged plans to exit the Base blockchain.
These points contributed to a pointy decline in consumer engagement. Dune Analytics data reveals the platform’s transaction quantity dropped by 99%, and by September, it was failing to draw new customers.
This decline inadvertently severely impacted revenue, which fell to simply $21 over the past 30 days, based on DeFillama information. Throughout the identical interval, the platform generated lower than $10,000 in charges.
Crypto group reacts
Good friend.Tech’s downfall drew widespread criticism from the crypto group, notably concerning the crew’s dealing with of the mission.
Calvin Chu, a core builder at Inconceivable Finance, voiced his disappointment, saying, “Friend.Tech had become more of a lab experiment than a genuine social finance project.” He additional expressed frustration over being “rugged” by the choice to close down future upgradeability, which, in his view, ended any hope for additional improvement.
Equally, Mikko Ohtamaa, the CEO of Buying and selling Technique, added that Good friend.Tech was a main instance of monetizing hype and shortly cashing out.
