Friend.tech Operation Will Go On Despite Concerns and Crisis

Key Points:

• Despite community concerns, the creators of Friend.tech clarified that the platform will not shut down.
• The transfer of the project’s smart contracts to Ethereum null addresses raised speculation about Friend.tech operation.

Friend.tech, a Web3 social network that allows users to trade “keys” connected to X accounts, has addressed concerns about its potential shutdown.

Read more: Friend.tech’s Leaving From Base Hinted By Co-founder Causes Token Price To Drop Sharply

Friend.tech Operation to Continue Despite Doubts

Recent actions by the development team, especially the transfer of control of the platform’s smart contracts to Ethereum null addresses, created speculation that the platform would be closing down. However, the creators have indicated Friend.tech operation will continue.

Last week, the team behind Friend.tech transferred vital administrative rights of the smart contracts powering the platform to Ethereum null addresses, typically used for permanently destroying tokens.

The move had sent alarm bells across the crypto community, which speculated on the future of the Friend.tech operation. However, the developers later explained that this actually was a decision to future-proof the platform from changes in fee structure or features so it can remain as is.

Amidst the growing concern, the team put up an assurance on social media platform X that it had no plans to shut down Friend.tech. They said the transfer of smart contract ownership was going to ensure that no future change in the fee structure of the platform could ever be done.

Platform Faces Problem of Keeping Users Engaged

Launched in August 2023 on Base, an Ethereum layer-2 network cosponsored by Coinbase, Friend.tech gained rapid popularity that at one point surpassed even the daily earnings of Ethereum. It has been a repository where crypto enthusiasts congregate, enabling users to purchase and sell keys that let users join some private group chats.

Nevertheless, the Web3 social network has failed to keep up its momentum. Despite collecting more than $20 million in transaction fees, Friend.tech has continued to demonstrate a month-by-month decline in the number of its users for the past several months, even after releasing a new version of the application and having a token airdrop. What had once been a leading application on the Base network has continued to struggle to retain users.