Friend.tech has made a dramatic move by transferring control of its smart contracts to Ethereum’s null address, effectively ending any potential for future changes or improvements. This null address, often used to destroy tokens irreversibly, means that the platform can no longer modify its fees or functionalities.
Following this announcement on September 8, the FRIEND token’s value dropped by over 30% within 24 hours, hitting an all-time low of $0.059. The token’s market capitalization, which had soared to $233.6 million shortly after launch, has now plummeted to $5.6 million.
The total value locked (TVL) in Friend.tech has also seen a dramatic decline, falling from $52 million in early October 2023 to under $3.5 million. This drop signifies a significant loss of user and investor confidence.
Since late July, the platform’s daily fees have consistently been under $1,000, a stark contrast to its previous performance. The trading volume for FRIEND tokens has similarly decreased, reflecting a drop in user engagement.
This decision follows Friend.tech’s earlier announcement about developing its own blockchain, “Friendchain,” which had already caused confusion in the community. The deletion of this announcement only added to the uncertainty about the platform’s future direction.
Despite clarifying that this transfer does not impact the separate web client at “friend.tech” or its associated domain, Friend.tech’s relinquishment of control over its smart contracts has effectively halted any further development or bug fixes. The platform, built on Coinbase’s layer-2 solution Base, had gained substantial traction by allowing creators to monetize content through tokenized shares.
