Crypto Platform Friend.tech Sees 26% Token Plunge Following Management Transfer

Crypto social media platform Friend.tech's native token has collapsed after the group transferred management and ownership of its smart contracts to an empty Ethereum address – giving up any control over them forever.

The September 8 transfer was made “to prevent future changes in their fees or practices,” Friend.tech said in X.

The platform's Friend.tech (FRIEND) token fell 26% to $0.067 in the 24 hours following the transfer, CoinGecko reports.

An Ethereum null address is an address that is intentionally burned to destroy tokens. Tokens sent to this address cannot be returned or reused.

Serpin Taxt, developer of the blockchain name protocol Ethos, told XPost that Friend.tech's move was “the end of an era” and “not like I've ever seen it play out.”

The change to the smart contract comes three months after Friend.Tech announced it would build its own blockchain, “Friendchain,” leaving the community confused about the future direction of the protocol.

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Friend.tech's X account later deleted the promotional post, adding to the confusion.

The rift between the Friends.tech team and its users escalated when they claimed the much-hyped FRIEND airdrop in early May.

The token market, which reached $233.6 million in four days after its launch, has since dropped to $6.3 million.

The total value locked on Fred.tech has fallen from an all-time high of $52 million in early October 2023 to $3.5 million, according to Defilama.

Since late July, daily payouts on the protocol have been consistently below $1,000, while FRIEND's trading volume has seen a similar decline.

Friend.tech is native to Ethereum layer-2 Base and allows creators to monetize their content through tokenized shares or “keys”. Its rival platforms include Theta Network, Hive and Decentralized Social.

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