Friend.tech, a Web3 social network, has decided to migrate to its own blockchain called Friendchain and part ways with Base, the Ethereum Layer 2 network operated by Coinbase. The migration, done in collaboration with Conduit, does not have a specific timeline but users will be kept informed about the progress. The decision to switch to Friendchain comes after co-founder Racer hinted at the team’s desire to move away from Base, causing a 20% drop in the price of Friend.tech’s native token at the time.
The announcement of the migration to Friendchain has raised questions among users regarding the value proposition of a social-focused chain. Concerns about potential higher gas fees on Friendchain compared to Base have been addressed by Friend.tech, which plans to use its native token, Friend (FRIEND), as a “fully transferable gas token.” Despite these concerns, the announcement sparked interest among traders, causing a significant spike in the price of Friend immediately afterward, with the price surging by 64% and then retracing to $0.89 within the hour.
Friend.tech, launched on August 10, 2023, has become one of the top decentralized applications (dApps) on the Base layer, attracting over 200,000 users and facilitating a trading volume exceeding $230 million. The platform offers unique features like converting user influence into tradable tokens known as “keys,” allowing users to access a creator’s attention or influence. Popular among cryptocurrency influencers, NBA players, and esports personalities, Friend.tech’s appeal extends beyond the crypto space.
Privacy concerns have been raised regarding the potential for user doxxing due to the link between Twitter profiles and Ethereum addresses on Friend.tech. The platform has clarified that any leaked information was from their public API, emphasizing the relevance of user caution in protecting personal information. Despite these concerns, the platform has experienced an increase in popularity, generating over $500,000 in revenue on May 3, after falling to under $20,000 over the past few months.
Friend.tech’s decision to migrate to Friendchain has led to speculation among users regarding the value proposition of a social-focused blockchain. The platform’s collaboration with Conduit and its plan to use the FRIEND token as a gas token have addressed some concerns about potential higher gas fees on Friendchain compared to Base. Despite initial price fluctuations following the announcement, Friend.tech’s popularity has increased, attracting a diverse user base and generating significant revenue. The platform continues to address privacy concerns and emphasize the importance of user caution in protecting personal information.
