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Friend.tech team addresses shutdown rumors as FRIEND token rebounds

Friend.tech team addresses shutdown rumors as FRIEND token rebounds

GrafaGrafa2024/09/10 22:35
By:Isaac Francis

The team behind the crypto social finance platform Friend.tech (CRYPTO:FRIEND) clarified rumors about a potential shutdown after they decided to relinquish control over their smart contracts. 

This decision initially caused panic among users and a sharp drop in the value of its native token, FRIEND, which plummeted by over 42%. 

However, after the team addressed the concerns, the token rebounded by more than 40%, trading at $0.094. 

The controversy began when Friend.tech announced that it was transferring admin and ownership rights of its smart contracts to a null address, effectively preventing any future changes. 

This move sparked fears among the community about the platform's future, with many interpreting it as a sign of abandonment. 

In response, the team denied these concerns, stating, “We have no plans to shutter or discontinue the Friend.tech web app. The actions below guarantee that no future changes can be made to smart contracts deployed on Base which would raise or create new fees. These actions do not affect the current functionality of the Friend.tech web app in any way. Everything you know and use remains the same.” 

Friend.tech operates on Ethereum’s Layer-2 Base, combining social media and decentralised finance (DeFi) principles. 

Users can create content and monetise it through tokenised shares called “keys.” 

Despite the clarification, concerns remain as the decision to give up smart contract control has raised questions about the project's sustainability. 

One user commented, “Abandoning the project but keeping the servers on is no better than shutting it down.” 

Recent data shows a significant decline in the platform's activity and revenue. 

Deposits have dropped from $52 million to $4 million, while daily user engagement and fees have also fallen sharply. 

DefiLlama reported that daily generated fees are now around $10,000, compared to a peak of $2 million. 

Despite the current uncertainty, some believe that the project could be revived by new developers, as has happened with other abandoned crypto projects. 

At press time, the Friend.tech (FRIEND) price was $0.08448.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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