- Friend.tech has reversed its decision to migrate off the Base layer-2 network.
- The token price has plummeted following the reversal announcement.
- A prominent crypto analyst discusses the implications for the platform.
Friend.tech retains its token and liquidity on Base amidst community concerns, leading to a significant drop in its token price.
Friend.tech’s Decision to Stay on Base
In a surprising turn of events, decentralized social media platform Friend.tech has announced it will be keeping its FRIEND token and liquidity on the Coinbase-incubated layer-2 network Base. This decision comes just a month after the platform initially declared it would migrate to its own chain, a move that was met with community backlash.
Impacts on FRIEND Token Price
The announcement of retaining the token on Base has had a notable impact on its price. On Thursday morning, FRIEND reached a new all-time low of $0.2973, based on data from CoinGecko. By the time of writing, the token had partially recovered to $0.3557, yet it remains significantly lower compared to its value prior to the retraction announcement.
Community’s Mixed Reactions
Friend.tech’s initial migration announcement was widely criticized by its community, primarily because it conflicted with the project’s ethos of community control. The platform was designed to allow users to monetize their social influence by creating “keys” of themselves, which can be bought and sold within the platform.
Protocol Adjustments and Market Sentiment
To align with community feedback, the Friend.tech team has disabled protocol fees on BunnySwap, its native decentralized exchange. This move has done little to revive the total value locked on BunnySwap, which has fallen from a peak of $53 million to around $10.6 million according to DeFi Llama. Crypto Quant analyst Bradley Park pointed out that Friend.tech was originally a leading contributor to the Base network’s growth, but subsequent platform changes and stronger competition from other decentralized applications have diluted its impact.
Conclusion
Friend.tech’s decision to stay on Base reflects its commitment to its community, but it has led to significant market volatility. While the platform continues to innovate, retaining user confidence and regaining market position will be crucial moving forward. The journey ahead involves balancing community expectations while fostering sustainable growth and value for its tokens.
