Friend.tech Token Nosedives After Ceding Smart Contract Control

Friend.tech, a decentralized social media platform, saw a sharp decline in the value of its native token, FRIEND, after the team transferred control of its smart contracts to Ethereum's null address on September 8. This move, aimed at preventing future changes to the platform's fees or functionality, led to a nearly 27% drop in the token's value, now trading at around $0.067. The decision has sparked confusion and concern within the community about the platform’s long-term viability.

The market cap of FRIEND, which initially reached $233.6 million shortly after launch, has now plummeted to approximately $6.3 million. Similarly, the total value locked (TVL) on the platform has decreased dramatically from $52 million in early October 2023 to under $3.5 million. Despite initial enthusiasm and the potential for creators to monetize content through tokenized shares, user dissatisfaction and a drop in daily fees have compounded the platform's struggles. The future of Friend.tech remains uncertain, with the recent transfer of smart contract control adding to the concerns about its development and stability.