Once a Favorite Project: It Decided to Shut Down Today as Altcoin’s Price Declined by 99 Percent

Phaver, a once promising decentralized social media platform, has officially ceased operations after its native token SOCIAL fell by over 99% since its Token Generation Event (TGE) in September 2024.

The abrupt shutdown erased months of community engagement and developer momentum. Phaver, which aimed to bridge the Lens and Farcaster ecosystems, once had 35,000 daily active users and over 800,000 downloads. At its peak, the app accounted for 50% of all Lens traffic and 20% of Farcaster traffic.

DeFi analyst Ignas shared his views on the platform’s collapse, citing a combination of strategic missteps and financial mismanagement:

“Yesterday I learned that Phaver was shutting down all social media,” Ignas wrote, adding, “I had high hopes for Phaver, which combines the Lens and Farcaster ecosystems.”

The platform’s token launch was marred by technical issues, including hours-long portal outages that prevented users from claiming tokens. The delays led to widespread FUD (fear, uncertainty, and doubt), undermining user trust from the outset.

According to Phaver team members, the project spent over $1 million to secure listings on five centralized exchanges (CEXs), including Bybit, KuCoin, and Gate.io. Despite this, trading volumes and liquidity failed to meet expectations.

The critical decision by the Phaver team not to sell tokens due to the already high FUD during the tokenization event resulted in a lack of operational funds. “It was a mistake,” said one former employee, adding that the decision left the team without sufficient resources to continue operations.

SOCIAL price has dropped 99% since its launch.

Phaver had raised $8 million at a valuation of around $80 million from major backers like Polygon Ventures and Nomad Capital. However, the financial loss ratio and poor treasury management proved fatal. As a Finnish company, Phaver was also legally required to pay its employees for the mandatory 1-2 month notice period following the closure announcement.

SOCIAL technically continues to trade on exchanges, but its value has fallen, shocking investors and users.

*This is not investment advice.