Friend.tech, a Web3 social network, has announced its decision to migrate to its own blockchain called Friendchain, parting ways with Base, the Ethereum Layer 2 network operated by Coinbase. The migration is being carried out in collaboration with Conduit, a blockchain infrastructure provider. While no specific timeline was provided in the announcement made, users have been assured that they will be kept informed about the progress of the blockchain development in the coming months. The decision to migrate to Friendchain follows public comments from Friend.tech co-founder Racer hinting at the team’s desire to move away from Base, which had caused a 20% drop in the price of Friend.tech’s native token at the time.
The plans to develop their own blockchain have raised questions among users who are curious about the value proposition of a social-focused chain. Concerns were raised about potential higher gas fees on Friendchain compared to Base, which is often referred to as a “low-cost” Ethereum Layer 2 solution. Despite these concerns, the announcement sparked interest among traders, leading to a significant spike in the price of Friend immediately afterward. Within just 20 minutes of the announcement, the price of Friend surged by 64%, reaching $1.31. However, the price quickly retreated to $0.89 within the hour. This significant price fluctuation comes just a month after Friend.tech launched the token, accompanied by a major airdrop.
Friend.tech, launched on August 10, 2023, has become one of the top decentralized applications (dApps) on the Base layer, attracting over 200,000 users and facilitating a trading volume exceeding $230 million. The platform uniquely converts user influence into tradable tokens known as “keys,” allowing users to gain access to a creator’s attention or influence. One significant factor contributing to Friend.tech’s popularity was the hype surrounding the Base network, a Layer 2 solution associated with Coinbase. The involvement of Paradigm, an investment firm connected to Coinbase, further increased confidence in Friend.tech’s potential. Despite facing privacy concerns regarding potential user doxxing, Friend.tech has seen an uptick in popularity recently, generating more than $500,000 in revenue on May 3.
One crypto trader, Dr. Jojipup, raised questions about the collaboration with Conduit and the value proposition of a social-focused chain. Friend.tech clarified that it will utilize its native token, Friend (FRIEND), as a “fully transferable gas token.” The platform has addressed privacy concerns by clarifying that leaked information was actually from their public API, showcasing the platform’s open nature while highlighting the importance of user caution in protecting personal information. Shortly after the launch of the Friend.tech airdrop on May 3, a sizable holder known as “Murphys1d” sold over 55,000 of the newly-issued Friend tokens. Despite concerns about potential higher gas fees on Friendchain compared to Base, the announcement of the migration sparked trader interest, leading to a significant price increase for Friend tokens followed by a subsequent price drop.
As Friend.tech prepares to migrate to its own blockchain, Friendchain, with the assistance of Conduit, users have been assured that they will be kept informed about the progress of the blockchain development in the coming months. The decision to migrate follows public comments from Friend.tech co-founder Racer hinting at the team’s desire to move away from Base, causing a 20% drop in the price of Friend.tech’s native token. While concerns have been raised about potential higher gas fees on Friendchain compared to Base, the announcement of the migration sparked interest among traders, leading to a significant spike in the price of Friend tokens before a subsequent price drop. Despite facing privacy concerns, Friend.tech has seen an uptick in popularity, generating significant revenue on May 3.
Friend.tech, a popular decentralized application on the Base layer, has attracted over 200,000 users and facilitated a trading volume exceeding $230 million by converting user influence into tradable tokens known as “keys.” The involvement of Paradigm, an investment firm connected to Coinbase, has increased confidence in the platform’s potential. However, the platform has faced privacy concerns regarding potential user doxxing, which Friend.tech has addressed by clarifying that leaked information was actually from their public API. The platform’s open nature and emphasis on user caution in protecting personal information have contributed to its recent popularity, generating more than $500,000 in revenue on May 3.
