Friend.Tech Shuts Down
The rise and fall of FriendTech.
The rise and fall of FriendTech.
tah_eth
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Friend.tech, once a leading crypto social network built on Coinbase's Base network, have ‘announced’ its closure, leaving investors stunned as the platform's creators walk away with around $44 million.
On Monday, the team announced they had transferred ownership of the platform's code to a null address, making the protocol permanent and blocking any further updates or fee collections by its original creators. Since launching in May, the FRIEND token has plummeted by 98%, now sitting at a value of $1.34 million.
Friend.tech's platform allowed users to buy "keys" tied to influencers, which unlocked access to exclusive chat rooms. At its height, the project was responsible for over half of the activity on the Base network. But in recent months, user interest took a sharp dive.
Despite its decline, Friend.tech managed to generate nearly $90 million in fees during its run, with half going to the development team. While the creators profited handsomely, the platform’s community and investors have been left disappointed.
Attempts to revive the platform, including a new app release and a token airdrop in May, failed to bring users back. Daily activity tanked, with new users dropping to single digits and daily fees sinking from $2 million to under $100. Investors, including notable backers like Paradigm and Notation Capital, have been hit hard by the shutdown, marking a sudden end for what was once a promising project.
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