Decentralized social media platform Friend.tech has reversed its decision to leave the Coinbase-incubated layer-2 network Base, opting to keep its token and liquidity on the platform.
Decentralized social media platform Friend.tech has reversed its decision to leave the Coinbase-incubated layer-2 network Base, opting to keep its token and liquidity on the platform. This change comes just a month after the team announced on June 10 that it would migrate to its own chain.
Following the announcement, the FRIEND token plunged to a new all-time low of $0.2973 on Thursday morning. At the time of writing, FRIEND has declined even further to $0.2962, and is down a staggering 60% over the past week. The token is down 90.5% from its all-time highs of $3.14, reached in May 6, 2024.
Friend.tech launched in August 2023, allowing influencers to monetize their social media presence by creating "shares" of themselves, earning fees whenever these shares are bought or sold. However, after the term "shares" attracted too much scrutiny, the project renamed them "keys." Despite an initial surge in interest, the platform’s popularity waned until May 2024, when anticipation spiked again with the announcement of an airdrop and the launch of Friend.tech v2.
The project’s recent tweet explained the rationale behind staying on Base: "$FRIEND was always meant to be a 100% community-controlled token powering the Clubs contract. Migrating the supply and liquidity would not align with that spirit. You'll still be able to create clubs, chat, buy keys, and use $FRIEND on Base in the friendtech app."
Additionally, the team has turned off protocol fees for BunnySwap, the Friend.tech-native decentralized exchange. BunnySwap, which launched in early May, saw its total value locked at $53 million, according to DeFi Llama. However, it has since plummeted to $10.6 million as of now.
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