Friend.tech, a social platform Web3, has revealed that its investors have unanimously decided to give up their rights to sell tokens to users, giving them full control over the funds.
The decentralized social media protocol received a lot of attention last year, but has recently seen a decline.
Friend.tech is looking for a comeback
Friend.tech users have speculated about a possible comeback, fueled by anticipation of an impending airdrop amid criticism and declining trading activity.
In a recent post, the platform hinted at a bold move, describing it as “the most dangerous mission” yet. The statement indicated that the FT bunnies, a reference to the platform’s tokens, are gearing up for this mission next spring.
Friend.tech’s announcement to give users full control over their tokens has been met with much positivity from the community, with some saying that this is now the project’s “redemption arc.”
photo from friendtech’s board meeting where investors agreed to give up their right to dump you to let us create the first truly user-controlled currency in one of the craziest experiments crypto has ever seen pic.twitter.com/khuXOEotv2
— friend.tech (@friendtech) March 3, 2024
On-chain data shows a sharp decline in daily user activity since Friend.tech peaked on September 13, with a record number of daily transactions of 539,810. Since then, demand for the platform has noticeably decreased.
Further analysis of Cryptokoryo’s dashboard highlights the magnitude of the downturn. Yesterday, Friend.tech recorded 584 transactions, a staggering drop of over 99% from peak volume.
Data from Dune Analytics shows that the total protocol fee is now 16,201,432 ETH, with cumulative transactions at 12,836,889. In the last 24 hours, the total number of transactions between unique active wallets (UAW) reached 4,740, an increase of 709.56%, and with UAW now at 735, an increase of 290%. Volume has also increased, now at $748.14K.
Friend.tech’s strategic rebound
Friend.tech wants to make a comeback. The issues have not escaped the attention of the crypto community, with one notable figure commenting: “It feels like they are finally feeling the heat and trying to stay relevant.”
The protocol recently received seed funding from Paradigm and worked with it to develop tools for online social interactions, including potential tokenization. According to DeFi analyst Miles Deutscher, the funding round included “token warrants,” which hinted at the potential for a future asset. He highlighted the effectiveness of airdrops as a marketing strategy to generate buzz and drive platform usage.
Despite the platform’s initiatives, skepticism remains within the crypto community, with concerns surrounding the potential exploitation of the system and the risk of a pump-and-dump system.