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09/09/24
23
Friend.tech Token Plummets After Smart Contract Transfer to Null Address
The token for the crypto social media platform friend.tech has faced a significant downturn after the team transferred the administration and ownership of its smart contracts to Ethereum’s null address. This decision effectively eliminates any potential for control or modifications to the contracts, a move the team claimed was intended to prevent future alterations in fees or functionalities.
Following the transfer that took place on September 8, the platform’s token, known as FRIEND, saw a steep decline of nearly 26%, dropping to a value of $0.067. The null address is specifically designed for token destruction, meaning that any cryptocurrency sent there becomes permanently inaccessible. Consequently, there is no path for recovery once tokens are sent to this address.
This development comes just three months after friend.tech announced plans to create its own blockchain, referred to as “Friendchain.” This announcement left many in the community uncertain about the platform’s future trajectory. Compounding the confusion, the team’s X account later removed the initial announcement about the smart contract transfer, which raised further questions among users.
Tensions between the friend.tech team and its user base have escalated due to various reported issues, particularly around the much-anticipated FRIEND airdrop that occurred in early May. While the token initially enjoyed a market cap of approximately $233.6 million just four days post-launch, its value has since plummeted to around $6.3 million.
Additionally, the total value locked within friend.tech has dramatically decreased from an all-time high of $52 million in early October 2023, now plummeting to less than $3.5 million. Daily revenue generated from the protocol has remained consistently below $1,000 since late July, mirroring the downward trend in FRIEND trading volumes. friend.tech operates on the Ethereum layer 2 platform, Base, allowing content creators to monetize their work through the sale of tokenized shares or “keys,” competing with platforms such as Theta Network and Hive.
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