Once a top SocialFi project backed by tier 1 venture capital firm Paradigm, Friend.tech $FRIEND is now facing serious challenges.
Today, the $FRIEND token experienced a significant drop of 40%, leaving investors increasingly concerned about the future of the project. The price decline comes on the heels of the development team’s decision to renounce control over its smart contracts, citing stagnant growth as the primary reason.
In this renouncement, the admin and ownership parameters were set to 0x000…000, effectively preventing any future modifications to the platform’s fees or functionality. However, the project’s web client at friend.tech will continue to operate without disruption. Importantly, none of the fees collected from the smart contracts or web client currently go to the Friend.tech dev team’s multisig wallet.
Admin and ownership parameters have been set to 0x000…000 to prevent any changes to their fees or functionality in the future.
This change does not affect the separate web client operated at https://t.co/YOHabcBL3H which will continue to function as is. No fees from either…
— friend.tech (@friendtech) September 8, 2024
Machi Big Brother Takes Huge Loss On $FRIEND Price Decline
One of the most notable investors, Machi Big Brother, suffered massive losses.
Machi Big Brother(@machibigbrother) spent ~5.2K $ETH($16.7M) to buy 11.1M $FRIEND, now worth only $0.7M!
He lost ~$16M on $FRIEND!https://t.co/j5UByo1LAf pic.twitter.com/4c5oQPNH62
— Lookonchain (@lookonchain) September 9, 2024
After investing $16.7 million into $FRIEND, the token’s recent plunge has slashed the value of his holdings to just $700,000, marking a $16 million loss.
CRYPTO JUST LOST A FRIEND.🚨
Machi Big Brother spent ~5.2K $ETH 💰 ($16.7M) to buy 11.1M $FRIEND, and this is now worth just $0.7M!
He lost a total of $16M.
Why did this happen?
The Friend․tech team handed over control over the protocol’s smart contracts, causing a 26% fall… pic.twitter.com/2c4F8fRQQy— Karan Singh Arora (@thisisksa) September 9, 2024
The sudden changes and sharp price decline have caused widespread concern among investors about the project’s long-term viability. Although the web client remains operational, the team’s decision to relinquish control of the smart contracts signals a potentially uncertain future for Friend.tech and its investors.
With no clear recovery in sight for the $FRIEND token, many are left questioning the next steps for what was once a promising SocialFi platform. For now, the market will be watching closely to see whether Friend.tech can stabilize or if this marks the beginning of the end for the project.
#PeckShieldAlert Friend[.]Tech $FRIEND has dropped -23.6% as the team renounces control of its smart contracts, citing stagnant growth.https://t.co/pM52nkUGDE pic.twitter.com/KqRjIxIjuo
— PeckShieldAlert (@PeckShieldAlert) September 9, 2024
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