Friend.tech — decentralized social network on Coinbase’s layer-2 network Base blockchain is under scrutiny as there is a speculation around potential shutdown. The platform, which allows users to invest in influencers via exclusive tokens, has been hit hard by recent developments.

The controversy stemmed after the platform’s team announced on September 08 that they had permanently set the admin and ownership parameters of the project’s smart contract to Ethereum’s null address.

Lookonchain— blockchain analytics firm noted that Friend.tech team sold nearly 19,477ETH — worth approximately $52.4M — between December 02 2023 and June 11 2024 contributing to decline in token’s price. The price of $FRIEND has dropped 95% since its launch. 

On this note, I would like to share a comment from Casey Grooms — Co-Founder of Soulbound to discuss the declining hype around SocialFi platforms like Friend.tech.

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“Friend.tech’s shutdown rumours, despite its early success, reveals the challenges decentralized social platforms face. These platforms promise freedom from censorship, but they also need to ensure they’re sustainable and safe for users.

To succeed long-term, decentralized social platforms must offer more than just being a blockchain version of existing social media: providing unique features that only blockchain enables, without making things too complex for users.

The Friend.tech case also shows we need to look closely at the teams behind these projects. Are they aiming for lasting impact, or just quick gains?

For these platforms to thrive, they should aim to appeal beyond the crypto crowd, making their benefits clear to everyone, with blockchain working quietly in the background. (There’s also a fine line to walk between free speech and maintaining a welcoming environment for all users)

Partnerships are crucial too. When creators, users, and advertisers all benefit, you get a system that can sustain itself. Ultimately, Friend.tech’s collapse is a learning opportunity. It highlights the need for strong leadership, a clear long-term plan, and a focus on real user value over short-term hype.”Casey Grooms — Co-Founder of Soulbound. 

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The post Friend.tech faces shutdown rumors amid administration shuffle: Platform denies closure, $FRIEND drops to 95%:Lookonchain appeared first on HIPTHER Alerts.