Crypto social finance platform Friend.tech clarified claims about a shutdown after its team decided to relinquish control over its smart contracts to prevent future modifications. This decision caused a drop in its native token, FRIEND.
The team reassured users that there were no plans to shut down the web app, explaining the action was aimed at preventing fee changes. Following this clarification, FRIEND surged over 40% to $0.094.
Friend.tech operates on Ethereum's Layer-2 Base, enabling users to monetize content through tradable tokenized shares called “keys.”
Despite the team's assurances, the decision to relinquish control sparked speculation, with some seeing it as a sign of the platform's end, causing FRIEND to drop 42% initially.
The situation stems from a significant collapse in revenue and daily user engagement. Deposits fell from $52 million to $4 million, with daily generated fees dropping to $10,000 from a peak of $2 million.
Analytics show the development team's wallet holds around $195,500 in various tokens. The platform's co-founders could not be reached for comment.
Despite uncertainties, there is potential for Friend.tech's revival, as seen with other abandoned projects like Aerodrome.
