Friend.tech Announces Proprietary Blockchain, Incites Questions and Spikes Trading Activity
Summary:
Decentralized social media platform Friend.tech, built on Coinbase's layer-2 network, Base, has announced plans to develop its own blockchain, Friendchain. However, this decision has sparked questions from users about its value proposition. Concurrently, the announcement triggered a 64% increase in the platform's native token, Friend (FRIEND), before it returned to its original price within an hour. The platform additionally experienced unprecedented activity coinciding with the release and airdrop of the Friend token.
The popular decentralized social networking platform, Friend.tech, which is built on the Coinbase level-2 network named Base, has revealed its intentions to establish a proprietary blockchain known as Friendchain. However, this announcement has sparked a myriad of questions from the platform’s user community. “Without any malintent, I'm genuinely interested in understanding the value proposition of a socially-focused chain,” queried Dr. Jojipup, a cryptocurrency trader, responding to Friend.tech’s public statement on X platform dated June 8. This notice explained that a cryptocurrency infrastructure startup, Conduit, would assist in the launch of this unique blockchain. Furthermore, Friend.tech plans to utilize its native token, Friend (FRIEND), as an entirely transferable gas token. In response, pseudonymous crypto commentator ox0 questioned the need for a blockchain, augmented by Pop Punk, co-founder of the gas-auditing company Gaslite, simply asking “why.” Other concerns raised were predominantly around the likelihood of higher gas fees than those on Base, often described as a cost-effective Ethereum (ETH) layer-2 solution.
Nevertheless, Friend.tech's announcement led to a significant increase in the value of Friend, triggering a surge of 64% within 20 minutes to peak at $1.31, before swiftly returning to $0.89 within the following hour, as per the data from CoinMarketCap.
This acute price variance of Friend token occurred merely a month after Friend.tech introduced it along with a substantial airdrop. On May 3, the day of the airdrop, the biggest holder of the token, known by the pseudonym "Murphys1d," offloaded more than 55,000 of the new Friend tokens.
This period also marked a transactional peak for Friend.tech that lay dormant following its robust launch in August 2023. In the first week of the launch, it saw its fees exceed $1 million within a single day on August 19, overshadowing both Uniswap and the Bitcoin network.
Our news team reached out to Friend.tech for a statement but had not received a response at the time of this report.
Published At
6/9/2024 4:31:31 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.