Coinspeaker
Friend.tech Chain Migration Triggers 22% FRIEND Price Drop
It appears that the news of Friend.tech’s migration from Layer 2 (L2) blockchain Base in collaboration with Conduit was not well received by its community members. Shortly after the announcement was made, the native token of the protocol FRIEND dropped by 22%. At the time of this writing, the token had plunged to $0.6862 with a 22.95% dip in the last 24 hours.
Friend.tech Offers $200K Bounty for Alternative to Base
Notably, Friend.tech was launched almost a year ago on Base, an Ethereum L2 network developed by Coinbase Global Inc (NASDAQ: COIN). Its unique approach to social interaction and monetization caused the protocol to gain significant traction in a short time.
However, Friend.tech became a subject of concern when it seemed like its monetization strategy put the project at risk of drawing negative attention from regulators.
Since then, the protocol began to seek alternatives to the Base blockchain and even went as far as offering a $200,000 bounty to anyone who can figure out a way. On June 9, Friend.tech took its migration a step further by announcing that it had inked a collaboration deal with crypto infrastructure startup Conduit. Per the announcement, they are currently working on introducing a new blockchain dubbed Friendchain.
In addition, users were invited to secure a spot on the Friendchain testnet, a move that would qualify them for a FRIEND airdrop snapshot. At one time, Friend.tech said that:
“The ultimate long term vision is for backers/investors to continue clipping protocol fees and to exit at a SaaS multiple to a Web2 company on being the Web3 portal for monetized social media.”
Friend.tech Community Members Questions Migration from Base
However, several crypto enthusiasts are questioning the move from Base to Friend.tech. Quite a number of Friend.tech community members are concerned about the introduction of another chain. The Giver, a pseudonymous Friend.tech user, highlighted that it was too early for the project to consider migrating to another chain.
Crypto trader Dr. Kojipup asked:
“No hate, just a genuine question, What is the value proposition of a social-focused chain?”
Similarly, pseudonymous commentator ox0 also queried Friend.tech on why it needed a blockchain. Pop Punk, the co-founder of gas-auditing firm Gaslite, posed the question “Why”.
These questions were clear indicators that a significant percentage of the Friend.tech community do not support the migration. The massive drop in the price of the token is an emphasis on the community’s displeasure. At a point on Sunday, the FRIEND token saw a brief spike to $1.29 but it was rather short-lived considering the current drawdown the token has recorded thus far.
By its present level, FRIEND is now 60% lower than it was in May. Meanwhile, the current price is just 1.8% higher than the token’s all-time low registered on Friday.
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Friend.tech Chain Migration Triggers 22% FRIEND Price Drop
Source: https://www.coinspeaker.com/friend-tech-chain-migration-price-drop/