- Friend.tech teams up with Conduit to develop Friendchain, a new blockchain using the FRIEND token as gas.
- This partnership seeks to boost Friend.tech’s autonomy and efficiency in the web3 social networking space.
- No specific timeline has been given for the operational go-live of Friendchain.
Friend.tech collaborates with Conduit to launch Friendchain, aiming to reshape web3 social networking with the FRIEND token as a pivotal element.
Friend.tech Enhances Autonomy with Friendchain Initiative
Friend.tech, a prominent player in the web3 social networking field, has announced a strategic collaboration with Conduit, a key infrastructure provider in the cryptocurrency sector. The partnership, revealed on June 8, aims to develop Friendchain. This dedicated blockchain will utilize the FRIEND token as a gas token, improving smart contract automation and performance. However, Friend.tech has yet to specify the expected timeline for when Friendchain will become fully operational.
A Step Towards Greater Independence
In a bid to achieve greater autonomy, this move away from existing networks aligns with previous comments made by Racer, the co-founder of Friend.tech. Last May, Racer indicated a desire to shift away from the Coinbase-backed Ethereum layer-2 network, Base, owing to feelings of detachment from the ecosystem. He even proposed a $200,000 bounty for a developer that could facilitate a seamless transition of the platform without causing disruptions. This initiative underscores the strategic push for independent operation and aligns with Racer’s broader vision.
Community Reaction: Diverse Opinions
The announcement has elicited varied reactions within the community. Some market analysts see it as a logical progression for a successful decentralized application. In contrast, others are concerned about the potential implications for growth. A prominent Friend.tech advocate, The Giver, expressed that while the move may be bullish in the short term, it could be bearish in the mid-term.
Balancing Immediate Gains with Long-Term Sustainability
The Giver pointed out that Friend.tech should focus on user acquisition by leveraging its existing relationships with Base and Solana to build a robust user base. The challenge, according to him, is to strike a balance between capturing immediate value and ensuring long-term sustainable development. He stated, “The ultimate long-term vision is for backers and investors to continue clipping protocol fees and potentially exit at a SaaS multiple to a Web2 company that serves as the Web3 portal for monetized social media.” The platform needs to address the gap between its initial offerings and new features to achieve this vision.
Market Impact of Friendchain Initiative
According to data from DeFiLlama, despite a recent 20% decline in total value locked (TVL), Friend.tech remains a leader in the SocialFi movement with nearly $10 million in TVL. Following the partnership announcement, the FRIEND token’s value surged by approximately 15%, reaching $0.96. This price spike is a testament to investor confidence and market optimism surrounding the new initiative.
Conclusion
In conclusion, Friend.tech’s collaboration with Conduit to launch Friendchain represents a strategic move towards increased autonomy and operational efficiency. Despite the absence of a definitive timeline for the project’s completion, the initiative has generally positive implications, albeit with some concerns about growth. As the project progresses, stakeholders will be keenly observing how Friend.tech balances immediate gains with long-term sustainability.
