Friend.tech, a Web3 social network, has announced its decision to migrate from Base, the Ethereum Layer 2 network operated by Coinbase, to its own blockchain named Friendchain. The migration is being conducted in partnership with Conduit, a blockchain infrastructure provider.
Although a specific timeline was not provided in the announcement, Friend.tech has assured its users that they will be kept informed about the progress of the blockchain development in the upcoming months. This move to Friendchain was not unexpected, as Friend.tech co-founder Racer had previously hinted at the team’s desire to move away from Base, causing a 20% decline in the price of Friend.tech’s native token.
The decision to develop their own blockchain has raised questions among users regarding the value proposition of a social-focused chain. Some users, like crypto trader Dr. Jojipup, have expressed curiosity about the collaboration with Conduit. Friend.tech has clarified that it will use its native token, Friend (FRIEND), as a “fully transferable gas token.”
There have been concerns about potentially higher gas fees on Friendchain compared to Base, which is known for being a “low-cost” Ethereum Layer 2 solution. Despite these concerns, the announcement has generated interest among traders, leading to a significant increase in the price of Friend immediately after the announcement. However, the price quickly fell back down within an hour.
Friend.tech, launched in August 2023, has become one of the top decentralized applications on the Base layer, attracting over 200,000 users and facilitating a trading volume exceeding $230 million. The platform converts user influence into tradable tokens called “keys,” allowing users to access a creator’s attention or influence.
Friend.tech’s popularity has been on the rise, despite privacy concerns related to user doxxing. The platform has addressed these concerns by clarifying that leaked information was from their public API, emphasizing the platform’s open nature and the importance of user caution in protecting personal information.
Overall, Friend.tech has experienced a resurgence in popularity, with revenue exceeding $500,000 on May 3, following a period of lower revenue in previous months. This uptick in popularity has been attributed to various factors, including the involvement of Paradigm, an investment firm connected to Coinbase, and the platform’s unique approach to user influence and tradable tokens.