Tech Giants After FriendChains Abandonment by Friends

CoinJee.com Report:
Friend’s local token. The once thriving SocialFi platform Tech has experienced a significant sell-off after abandoning its application chain plan for the project.
On July 3rd, Friend.Tech announced the abandonment of its vision for FriendChain and reduced the protocol fees for Friend to zero. The BunnySwap exchange and the technical protocol.
Data from CoinGecko shows that this move has caused a 35% plunge in the price of FRIEND, with the token currently down over 90% from its all-time high.
Friend/USD. Source: CoinGecko.
Following the community’s angry response to 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 cutting back on its actions, Friend.Tech will continue to operate at its base.
FriendChain will be built on Ethereum and deployed with the assistance of Conduct, a hosting service provider, and will serve as the native blockchain for hosting Friend.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, revenue even surpassed $1 million on September 14th.
However, since then, with the decision to abolish protocol fees devastating Friend, 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 unanimous incentives helped V1 achieve outstanding success. Unfortunately, the decision to keep all the fees for yourself didn’t capture that with the release of V2. It’s good to see the Financial Times team change direction, but only time will tell if it’s too little or too late.”
Related: Friend Tech enjoys activity recovery after V2 launch.