CoinWorld reported:
Friend’s local token. Tech, the once thriving SocialFi platform, has faced a significant sell-off after abandoning its application chain plan for the project.
On July 3rd, Friend. Tech announced the abandonment of the vision for FriendChain and reduced the protocol fee for Friend to zero. The BunnySwap exchange and the technical protocol are related to this.
According to data from CoinGecko, this move has led to a drastic 35% drop in the price of FRIEND, and the token is currently down over 90% from its all-time high.
Friend/USD. Source: CoinGecko.
Following the angry response from the community towards Friend, people have started to abandon this chain. As tech companies launch their own blockchains, the fragmentation of liquidity, and the saturation of the second and third layers have become the main pain points for users. After the reduction in activity, Friend. Tech will continue to operate on its base.
FriendChain will be built on Ethereum with the assistance of Conduct, a deployment aggregator, and will serve as the native blockchain hosting Friend’s. Tech v2, BunnySwap, and all future ecosystem products.
Declining Revenue
In October 2023, Friend. Tech boasted over 10,000 daily active users and generated $100,000 in daily revenue. According to data from TokenTerminal, the revenue even surpassed $1 million on September 14th.
However, since then, with the decision to abolish the protocol fee, Friend has been devastated, and the metrics can only decline. On July 6th, Friend. Tech only had 220 daily active users and generated $1 in revenue.
Friend Tech DAU and revenue. Source: TokenTerminal
Cryptocurrency investor Seedphase responded to this news on social media.
Seedproph said, “The community’s unified incentives helped V1 achieve outstanding success. Unfortunately, the decision to keep all fees for oneself did not capture the release of V2. It’s good to see the Financial Times team changing direction, but only time will tell if it is too little or too late.”
Related: Friend Tech enjoys a recovery in activity after the launch of V2.
