Friend.tech, a blockchain-based social media platform, saw its token drop in value following a major administrative shift.
The platform's development team transferred ownership of the platform's smart contracts to Ethereum's null address on September 8, effectively surrendering control over the contracts permanently.
The team explained on X that the decision to relinquish control was to ensure that the platform's fees and core functionalities could not be changed in the future.
The Ethereum null address to which the contracts were sent is a "burn" address. This address permanently destroys anything sent to it, making the transfer irreversible.
Blockchain developer Serpin Taxt, a contributor to the blockchain credibility protocol Ethos, voiced his opinion on the situation in an X post:
His sentiment reflects the surprise and confusion felt by many in the Friend.tech community, especially given the platform's previously announced plans to create its own blockchain, dubbed "Friendchain." However, Friend.tech later deleted the original post announcing the new blockchain initiative.
This decision has caused unease among its users, and the market reaction was quick. FRIEND, the platform's native token, has plunged by 24.1% over the past 24 hours, falling to $0.061. At its peak, the token boasted a market capitalization of $233.6 million, yet it has since plummeted to just $5.6 million.
The token's decline reflects the growing uncertainty surrounding Friend.tech's future as users and investors grapple with the platform's recent changes and unclear roadmap.
Adding to the platform's challenges, issues arose when many users experienced difficulties claiming the FRIEND token airdrop in May .
