On Sept. 8, the group behind the decentralized social media protocol Good friend.Tech transferred management of its good contract to Ethereum’s null handle, successfully relinquishing management of the challenge one 12 months after its profitable launch.
In a social media put up on X, the group acknowledged:
“Admin and possession parameters have been set to 0x000…000 to stop any adjustments to their charges or performance sooner or later.”
Regardless of this, the online shopper at Good friend.Tech will proceed to function as common. The group additionally clarified, “No charges from both the good contracts or Good friend.Tech presently go to the dev group multisig.”
Following the announcement, the platform’s native token FRIEND plummeted by over 47% in 24 hours, reaching an all-time low of $0.06026, in line with CryptoSlate information at press time.
Whereas the group has not offered a transparent cause for this transfer, CryptoSlate’s evaluation of on-chain information highlights the platform’s steep decline in reputation.
Friendtech’s decline
Good friend.Tech, launched in August final 12 months on Coinbase’s Layer 2 community Base, initially gained speedy traction within the crypto group.
By September 2023, the protocol’s each day earnings surpassed Ethereum’s, and its prime keys fetched excessive costs. Across the interval, the platform additionally raised an undisclosed seed spherical from crypto VC agency Paradigm.
Nevertheless, the hype pale because the platform struggled to keep up momentum. It confronted a number of challenges, together with sim swap assaults and mismanaged plans to exit the Base blockchain.
These points contributed to a sharp decline in person engagement. Dune Analytics information reveals the platform’s transaction quantity dropped by 99%, and by September, it was failing to draw new customers.
This decline inadvertently severely impacted income, which fell to simply $21 over the past 30 days, in line with DeFillama information. Throughout the identical interval, the platform generated lower than $10,000 in charges.
Crypto group reacts
Good friend.Tech’s downfall drew widespread criticism from the crypto group, significantly relating to the group’s dealing with of the challenge.
Calvin Chu, a core builder at Inconceivable Finance, voiced his disappointment, saying, “Good friend.Tech had change into extra of a lab experiment than a real social finance challenge.” He additional expressed frustration over being “rugged” by the choice to close down future upgradeability, which, in his view, ended any hope for additional growth.
Equally, Mikko Ohtamaa, the CEO of Buying and selling Technique, added that Good friend.Tech was a major instance of monetizing hype and shortly cashing out.