Friend.tech’s New Blockchain Plans Raise Community Concerns and Speculations

Friend.tech, a decentralised social media platform built on Coinbase’s layer-2 network Base, has announced plans to develop its own blockchain, Friendchain, in collaboration with Conduit. This move has left many users questioning the necessity and value of this decision.

Community Reactions and Token Fluctuations

No hate, just a genuine question:

What is the value proposition of a social-focused chain?

— Dr. Kojipup | AstraBit (@Dr_Kojipup) June 8, 2024

The announcement triggered a variety of responses from the crypto community. Crypto trader Dr Kojipup asked, “What is the value proposition of a social-focused chain?” while another user, ox0, questioned the need for a blockchain. Pop Punk, the Co-Founder of gas-auditing firm Gaslite, commented, “Why.”

Despite the scepticism, the announcement led to a significant spike in the price of Friend.tech’s native token, FRIEND. Within 20 minutes, FRIEND surged 64% to $1.31 before quickly dropping back to $0.89. Similarly, the data reported a 15% surge following the announcement, with the token reaching $0.96.

Past Performance and Strategic Shifts

The volatility in FRIEND’s price follows a pattern seen since its launch. The token, introduced with a major airdrop on May 3, saw its largest whale, “Murphys1d,” sell over 55,000 tokens shortly after it went live. This event marked a record high for transactions on Friend.tech, which had seen declining activity since its launch in August 2023.

A week after its launch, Friend.tech’s fees surpassed $1 million in 24 hours on August 19, surpassing Uniswap and the Bitcoin network. However, daily transaction volumes have since plummeted to record lows of less than 1,000, according to Dune Analytics.

Industry Perspectives on Friendchain

The community’s reaction to Friend.tech’s announcement has been mixed. Some analysts view the move as a natural progression for successful decentralised applications to evolve into independent chains. However, others caution that this might hinder growth.

Conclusion

Friend.tech’s decision to migrate to its blockchain, Friendchain, has sparked a spectrum of reactions within the crypto community. While some see it as a strategic move for growth and independence, others remain sceptical about its necessity and potential impact on the platform’s future. As the development of Friendchain progresses, only time will tell whether this bold move will pay off or hinder Friend.tech’s trajectory in the decentralised social media space.