Friend.tech Token Plummets Over 20% Amid Co-Founder’s Base Departure Hint
The decline came after one of the protocol’s co-founders, who goes by the pseudonym Racer, expressed intentions to part ways with Base, the Ethereum Layer-2 network developed by Coinbase that hosts the project.
“System design bounty: If you can figure out a way to migrate friendtech off of Base without causing major issues for users, and it works well enough that we decide to use it, we will pay you $200K,” Racer said in a post on X .
Friend.tech Relationship With Base Has Been Tumultuous
According to Racer, the relationship between the Friend.tech team and Base has been tumultuous.
In another post, Racer mentioned that Farcaster investors had misconstrued their project upon its launch, resulting in a strained relationship with the Base community.
The team felt ostracized and disconnected from certain parts of the Base and Ethereum ecosystems.
Jesse Pollak, the head of Base at Coinbase, responded to the situation with a message of understanding.
In a post, Pollak acknowledged that the Friend.tech team had experienced feelings of isolation and disconnection and expressed his support for whatever path they choose.
“I’ll be sad if the team decides to leave Base, but I also respect and will support whatever path – that’s the beauty of the decentralized, onchain, economy,” Pollak wrote.
Following Racer’s statements, the value of the Friend.tech token plummeted by approximately 20%.
Friend.tech’s Popularity Sees Uptick After Decline
Friend.tech, launched on August 10, 2023, has become one of the top decentralized applications (dApps) 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,” allowing users to gain access to a creator’s attention or influence.
The model has attracted not only cryptocurrency influencers but also NBA players and esports personalities, broadening its appeal beyond the crypto space.
One significant factor contributing to Friend.tech’s popularity was the hype surrounding the Base network, a Layer 2 solution associated with Coinbase.
The involvement of Paradigm, an investment firm connected to Coinbase , further increased confidence in Friend.tech’s potential.
However, the platform has also faced privacy concerns, particularly regarding the potential for user doxxing due to the link between Twitter profiles and Ethereum addresses.
Friend.tech has addressed these concerns by clarifying that the information deemed leaked was actually from their public API, showcasing the platform’s open nature while also highlighting the importance of user caution in protecting personal information.
Nevertheless, Friend.tech has seen an uptick in popularity as of late.
According to a Dune analytics dashboard , the project raked in more than $500,000 in revenue on May 3.
This came as its revenue had recently fallen to under $20,000 over the past couple of months.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
XRP Price Prediction: Ripple CEO Drops 4 Catalysts—Can XRP Clear $1.35?
Inflation Surges as the Fed Faces a Tough Choice: Are These 4 Altcoins Worth Buying Now?
Vertiv, the leader in AI liquid cooling, reports Q3 revenue up 61% year-on-year, orders increase over 100%, pre-market surge over 15% | Financial Report Insights
Vertiv's net sales for the third quarter reached $4.313 billion, up 61% year-on-year, with adjusted earnings per share at $2.21, up 78% year-on-year, both far exceeding expectations. Organic orders grew over 100% year-on-year, indicating strong momentum is likely to continue. The company has comprehensively raised its full-year guidance, with a midpoint net sales target of $14.65 billion and midpoint earnings per share of $7.15. Premarket share price surged over 15% at one point.
The most reliable warning signal in the US stock market has lit up! After flashing twice in history, both times were followed by a major bear market
The quality factor QMJ, which has tracked the US stock market for nearly 70 years, is issuing a rare warning. In July this year, the indicator posted its largest single-month gain of 14.3% since 1957, as the long-running outperformance of junk stocks over more than two years was suddenly reversed. Historically, similar sharp reversals in QMJ occurred during the bursting of the internet bubble in 2000 and the financial crisis in 2008.
Crypto prices
More
