Friend.tech, a Web3 social platform, has revealed that its investors have unanimously decided to waive their rights to sell tokens to users, granting them full control over the funds.
The decentralized social media protocol garnered significant attention last year but has recently experienced a decline.
Friend.tech Is Looking for a Comeback
Friend.tech users have been speculating about a potential comeback, fueled by anticipation of an upcoming airdrop amidst 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 in the coming spring.
Friend.tech’s announcement on giving users full control over their tokens has been received with a lot of positivity from the community, with some saying that it’s now the project’s “redemption arc.”
photo from the friendtech board meeting where investors agreed to give up their right to dump on you to let us create the first truly user controlled currency in one of the craziest experiments that crypto has ever seen pic.twitter.com/khuXOEotv2
— friend.tech (@friendtech) March 3, 2024
On-chain data reveals a stark decline in daily user activity since Friend.tech peaked on September 13, achieving an all-time high daily transaction count of 539,810. Since then, demand for the platform has noticeably waned.
Further analysis from Cryptokoryo’s dashboard highlights the extent of the downturn. Just yesterday, Friend.tech recorded 584 transactions, a staggering over 99% decrease from its peak volume.
Data from Dune analytics shows that the total protocol fees are now at 16,201.432 ETH, with the cumulative transactions at 12,836,889. In the last 24 hours, the total number of transactions made between unique active wallets (UAW) hit 4,740, an increase of 709.56%, and with UAW now at 735, up 290%. The volume is also up, now at $748.14K.
Friend.tech’s Strategic Rebound
Friend.tech has been looking to make a comeback. Its struggles have not escaped the crypto community’s attention, with a notable figure remarking, “Feels like they are finally feeling the heat and are trying to stay relevant.”
The protocol recently received seed funding from Paradigm and partnered with it to develop tools for online social interactions, including potential tokenization. According to DeFi analyst Miles Deutscher, the funding round included “token warrants,” hinting at the potential for a future asset. He emphasized 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 raised about the potential exploitation of the system and the risk of a pump-and-dump scheme.