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Friend.tech, a decentralized social app built on Coinbase’s blockchain Base, has successfully transferred ownership of its smart contract and funds to “a new combination of multisig and professional custody.”
News that the necessary on-chain transactions to transfer ownership had been completed was shared by Friend.tech on X over the weekend, with the team saying the move was necessary to improve security and tax compliance.
“These changes will improve friendtech’s long-term security and allow us to meet tax obligations,” the post said.
We have completed onchain transactions to transfer ownership of the friendtech contract and funds to a new combination of multisig and professional custody.
These changes will improve friendtech’s long-term security and allow us to meet tax obligations
— friend.tech (@friendtech) December 2, 2023
Friend.tech’s move to a more secure multisig storage solution follows an incident from October this year, when a scammer got away with around $400,000 in 24 hours by targeting Friend.tech users with so-called SIM swapping to attack.
In a post on
The same scammer has profited $385,000 (234 ETH) in the last 24 hours by exchanging SIM cards between four different FriendTech users. pic.twitter.com/03BoBEqGax
— ZachXBT (@zachxbt) October 4, 2023
Launched in August
Friend.tech only launched on the new Base blockchain in August this year and has already accumulated revenues of more than $25 million, according to data from DeFiLlama.
In terms of user fees, Friend.tech has now generated nearly $52 million on a cumulative basis.
The fees are derived from taxing approximately 10% of social token trading volume.
Friend.tech costs and revenue. Source: DeFiLlama
The platform made headlines in October when data showed that the platform had generated more than $20 million in revenue after just two months of being live.
Friend.tech acts as a platform that allows users to link their