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>>Friend.tech Token experienced a significant decline of over 20% following hints of a co-founder’s departure from the company.

Friend.tech Token experienced a significant decline of over 20% following hints of a co-founder’s departure from the company.

crypthub

1/24/2025, 11:48:40 AM

The Decline of FRIEND Token and Its Underlying Factors

The native token of Friend.tech, FRIEND, has witnessed a substantial value drop after a co-founder's public announcement. Racer, using this pseudonym, disclosed his intention to leave Base, an Ethereum Layer-2 network developed by Coinbase, where Friend.tech currently resides. He attributed the strain in relations to misunderstandings between the project's investors and the Base community, as well as feelings of marginalization within the Ethereum ecosystem.

Response from Base and the Impact on FRIEND Token

Jesse Pollak, Head of Base at Coinbase, acknowledged Friend.tech's struggles and offered support while emphasizing the benefits of blockchain's decentralization. Following Racer's statements, the FRIEND token value plummeted by approximately 20%. Despite this, Friend.tech has gained significant traction since its August 2023 launch, boasting over 200,000 users and trading volumes exceeding $230 million on Base.

Friend.tech's Unique Features and Rapid Growth

The platform's innovative system distributes tradable tokens called "keys" based on user influence, granting access to creators' attention and power. This model has attracted high-profile figures from various fields, including cryptocurrency influencers, NBA players, and esports personalities, significantly expanding Friend.tech's reach. Initial hype surrounding Base network and Paradigm's (a Coinbase-linked firm) investment contributed to the platform's popularity growth.

Privacy Concerns and Friend.tech's Response

Privacy issues have been raised due to the connection between Twitter profiles and Ethereum addresses, causing concerns about user doxxing. Friend.tech has addressed these by attributing the leaked information to their public API and emphasizing their open-source nature. Despite these measures, the platform has continued to gain traction, reaching over $500,000 in revenue on May 3, following a dip below $20,000.