Friend.tech, a web3 social network, has discontinued its affiliation with Base, the Ethereum Layer 2 network that Coinbase manages. The company is in the process of transitioning to its own blockchain, Friendchain.
This migration is being executed with Conduit, a blockchain infrastructure provider.
In the announcement made on X, no specific timeline was provided. However, Friend. Tech assured its users that they would be kept apprised of the progress of blockchain development in the coming months.
Friend. Tech co-founder Racer had previously made public comments that suggested the team’s intention to transition from Base, so the decision to migrate to Friendchain is partially unexpected.
At the time, Racer’s comments had resulted in a 20% decrease in Friend’s value—tech’s native token.
Users Are Inquiring About Friends.tech’s Migration to a New Chain
Among users intrigued by the value proposition of a social-focused chain, their intentions to develop their blockchain have sparked questions.
In response to Friend, Dr. Jojipup, a crypto trader, inquired about the collaboration with Conduit-Tech’s announcement.
Friend.tech has clarified that it will employ its native token, Friend (FRIEND), as a “fully transferable gas token.”
Concerns were expressed regarding the potential for Friendchain to have higher gas fees than Base, frequently referred to as a “low-cost” Ethereum Layer 2 solution.
Nevertheless, despite these concerns, the announcement piqued the interest of traders, resulting in a substantial increase in the price of Friend immediately following the announcement.
Friend’s price increased by 64% to $1.31 within 20 minutes of the announcement.
Nevertheless, CoinMarketCap reported that the price promptly declined to $0.89 within an hour.
It is important to note that this significant price fluctuation happened just one month after Friend.tech introduced the token and held a sizable airdrop.
A significant possessor, “Murphys1d,” sold more than 55,000 newly-issued Friend tokens shortly after the Friend.tech airdrop was launched on May 3.
The popularity of Friend.tech has begun to increase following a period of decline
On August 10, 2023, Friend.tech was founded and has since become one of the base layer’s most prominent decentralized applications (dApps). It has attracted over 200,000 users and facilitated a trading volume that exceeds $230 million.
The platform converts user influence into tradable tokens known as “keys,” enabling users to access a creator’s attention or influence uniquely.
The model has expanded its appeal beyond the cryptosphere by attracting not only NBA players and esports personalities but also cryptocurrency influencers.
The hoopla surrounding the Base network, a Layer 2 solution associated with Coinbase, was a significant factor contributing to the popularity of Friend.tech.
The involvement of Paradigm, an investment firm affiliated with Coinbase, added to the confidence in Friend.tech’s potential.
Nevertheless, the platform has encountered privacy concerns, notably about the potential for user doxxing, resulting from the connection between Ethereum addresses and Twitter profiles.
These concerns have been addressed by Friend.tech, which clarified that the information deemed leaked was actually from their public API. This clarification underscores the platform’s open nature and emphasizes the significance of user caution in protecting personal information.
However, there has been a recent increase in the prominence of Friend.tech.
According to a Dune Analytics dashboard, the initiative brought over $500,000 on May 3.
This occurred after its revenue had declined to less than $20,000 in the previous few months.