Generating only $21 in revenue in 30 days, FriendTech relinquishes control of contracts
On Sept. 8, the group behind the decentralized social media protocol Buddy.Tech transferred management of its sensible contract to Ethereum’s null handle, successfully relinquishing management of the challenge one yr after its profitable launch.
In a social media submit on X, the group stated:
“Admin and possession parameters have been set to 0x000…000 to stop any adjustments to their charges or performance sooner or later.”
Regardless of this, the net shopper at Buddy.Tech will proceed to function as normal. The group additionally clarified, “No charges from both the sensible contracts or Buddy.Tech at present go to the dev group multisig.”
Following the announcement, the platform’s native token FRIEND plummeted by over 47% in 24 hours, reaching an all-time low of $0.06026, in response to CryptoSlate knowledge at press time.
Whereas the group has not supplied a transparent cause for this transfer, CryptoSlate’s evaluation of on-chain knowledge highlights the platform’s steep decline in reputation.
Friendtech’s decline
Buddy.Tech, launched in August final yr on Coinbase’s Layer 2 community Base, initially gained speedy traction within the crypto neighborhood.
By September 2023, the protocol’s day by day earnings surpassed Ethereum’s, and its high keys fetched excessive costs. Across the interval, the platform additionally raised an undisclosed seed spherical from crypto VC agency Paradigm.
Nevertheless, the hype light because the platform struggled to keep up momentum. It confronted a number of challenges, together with sim swap assaults and mismanaged plans to exit the Base blockchain.
These points contributed to a pointy decline in consumer engagement. Dune Analytics data exhibits the platform’s transaction quantity dropped by 99%, and by September, it was failing to draw new customers.
This decline inadvertently severely impacted income, which fell to only $21 over the past 30 days, in response to DeFillama knowledge. Throughout the identical interval, the platform generated lower than $10,000 in charges.
Crypto neighborhood reacts
Buddy.Tech’s downfall drew widespread criticism from the crypto neighborhood, notably relating to the group’s dealing with of the challenge.
Calvin Chu, a core builder at Unimaginable Finance, voiced his disappointment, saying, “Buddy.Tech had turn out to be extra of a lab experiment than a real social finance challenge.” He additional expressed frustration over being “rugged” by the choice to close down future upgradeability, which, in his view, ended any hope for additional improvement.
Equally, Mikko Ohtamaa, the CEO of Buying and selling Technique, added that Buddy.Tech was a first-rate instance of monetizing hype and rapidly cashing out.
