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Friend.tech Reverses Decision: Stays on Base L2 Network

Friend.tech Reverses Decision: Stays on Base L2 Network

TL;DR

  • Friend.tech Stays on Base L2 Network: The decentralized social media platform Friend.tech has reversed its decision to leave the Coinbase-incubated layer-2 network Base. Instead, it will continue operating within the Base ecosystem.
  • FRIEND Token Price Plummets: Following the migration announcement, the FRIEND token hit an all-time low of $0.2973. It currently trades 20% lower than the previous day, with a slight rebound to $0.3402.
  • Project Overview and Community Impact: Friend.tech, which allows users to monetize their influence, emphasized its commitment to community control. Changes to BunnySwap and community sentiment reflect the challenges ahead.

The decentralized social media platform Friend.tech has decided to remain on the Coinbase-incubated layer-2 network Base. Just last month, the team announced its intention to leave Base and launch its own chain. However, the recent reversal has had a significant impact on the price of the FRIEND token.

The FRIEND token experienced a sharp decline, hitting an all-time low of $0.2973 on Thursday morning, according to data from CoinGecko. As of the time of writing, FRIEND is trading nearly 20% lower than the previous day, with a slight rebound to $0.3402. This drastic drop follows the initial migration announcement, which was met with criticism from the community.

Friend.tech: A Brief Overview

Friend.tech, launched in August 2023, aimed to create a social media network where users could monetize their influence. Initially, the project referred to these monetizable units as “shares.”

However, due to scrutiny, they later renamed them to “keys.” Despite initial excitement, interest waned until May 2024 when the project announced an airdrop and the launch of Friend.tech v2.

The project emphasized that the FRIEND token was always intended to be community-controlled, powering the Clubs contract. The decision to stay on Base aligns with this spirit, allowing users to continue creating clubs, chatting, buying keys, and using $FRIEND within the friendtech app.

Friend.tech Reverses Decision: Stays on Base L2 Network

BunnySwap and Community Sentiment

Friend.tech also made changes to BunnySwap, its native decentralized exchange (DEX). After a successful launch in early May, BunnySwap’s total value locked peaked at $53 million, as reported by DeFi Llama. Nevertheless, the DEX’s value has subsequently dropped to a minimum of $10.6 million.

Crypto Quant analyst Bradley Park highlighted that Friend.tech’s position on Base was crucial. “FT was originally one of the leading contributors to the Base boom,” he explained. “However, overshadowed by the growth of Farcaster, FT announced its move to another chain, leaving its original position.”

Community sentiment reflects disappointment, and the drop in the FRIEND price coincided with whale wallets exiting their positions earlier today. Friend.tech’s decision to remain on Base L2 has sparked both controversy and market volatility. Investors and users will closely monitor how the project navigates this challenging period and whether it can regain its appeal within the crypto community.

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