Friend.tech, the Web3 social network, experienced a significant drop in value for its native token FRIEND after one of its co-founders expressed intentions to part ways with Base, the Ethereum Layer-2 network developed by Coinbase. This decision was due to a strained relationship with the Base community caused by misunderstandings about the project. Jesse Pollak, head of Base at Coinbase, responded with understanding and support for whatever path the Friend.tech team chooses.
Following Racer’s statements, the value of the Friend.tech token plummeted by approximately 20%. However, Friend.tech has seen an uptick in popularity in recent times despite the decline. Launched on August 10, 2023, it has become one of the top decentralized applications 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,” attracting not only cryptocurrency influencers but also NBA players and esports personalities.
Friend.tech’s popularity was initially boosted by the hype surrounding the Base network and the involvement of Paradigm, an investment firm connected to Coinbase. However, the platform has also faced privacy concerns related to potential user doxxing due to the link between Twitter profiles and Ethereum addresses. Friend.tech has addressed these concerns by clarifying that leaked information was from their public API, emphasizing user caution in protecting personal information. Despite these challenges, the project has regained popularity, with revenue exceeding $500,000 on May 3 after falling to under $20,000 in the previous months.
The relationship between Friend.tech and Base has been tumultuous, with the team feeling disconnected from certain parts of the Base and Ethereum ecosystems. Racer expressed intentions to migrate Friend.tech off of Base, offering a $200K bounty for a successful migration that does not cause major issues for users. Pollak’s response acknowledged the team’s feelings of isolation and expressed support for their decisions, highlighting the decentralized nature of the onchain economy.
In conclusion, Friend.tech’s value decline following Racer’s statements underscores the importance of maintaining strong relationships within the cryptocurrency community. Despite challenges, the platform has managed to regain popularity and attract a diverse user base. The developments surrounding Friend.tech and Base highlight the complexities and dynamics of the evolving crypto landscape. As the project navigates through these challenges, it remains to be seen how it will continue to innovate and adapt to the changing market conditions.