Friend.tech Hands Over Smart Contract Ownership to Ethereum Null Address, Leaving Community Confused

Friend.tech, a social media platform built on Ethereum layer 2 Base, saw its token, FRIEND, have experienced a dramatic fall, dropping nearly 26% to

Social media platform Friend.tech, built on Ethereum layer 2 Base, has seen its token, FRIEND, experience a dramatic fall.

The token plunged nearly 26% in the past 24 hours, trading at $0.067, following a significant move by the platform’s team.

On September 8, Friend.tech transferred the ownership of its smart contracts to Ethereum's null address.

"This action will prevent any changes to their fees or functionality in the future. Keys can still be burned, but no new keys will be minted," Friend.tech stated in a post on X (formerly Twitter).

However, this action sparked confusion and concern within the community.

The FRIEND token, which saw a market cap of $237.4 million shortly after its launch, now stands at just $5.9 million.

According to DefiLlama, the total value locked (TVL) on the platform has also plummeted from a high of $52 million in early October 2023 to under $3.5 million.

The protocol, native to Ethereum’s layer-2 Base, allows creators to monetize their content through tokenized shares or "keys."

Despite its initial hype, the platform has struggled with user dissatisfaction, especially following issues with the FRIEND airdrop in May.

Moreover, daily fees earned from the protocol have dropped below $1,000 since late July, and trading volume has also decreased significantly.

Friend.tech had previously announced plans to develop its own blockchain, “Friendchain,” further adding to the community’s confusion about its future direction.

The platform's X account later deleted its announcement about the null address transfer, leaving followers to speculate on the next steps for the platform.

This major move essentially means that Friend.tech no longer has control over its smart contracts, leaving many to wonder about the platform's future direction.