FRIEND Token Price Plummets After Co-Founder Hints Leaving Base

The token for the Web3 social network Friend.tech experienced a significant decline today after a controversial social media post by its co-founder, Racer. The post expressed dissatisfaction with Base, the Ethereum Layer-2 network created by Coinbase, which currently hosts the project.

Racer, who remains pseudonymous, shared on X (formerly Twitter) a bounty offer for a solution to migrate Friend.tech off of Base without causing major disruptions for users.

 “System design bounty: If you can figure out a way to migrate Friend.tech off of Base without causing major issues for users, and it works well enough that we decide to use it, we will pay you $200K,” Racer wrote.

FRIEND Token Collapses

Racer elaborated on the strained relationship between the Friend.tech team and Base. They cited issues with Farcaster investors who reportedly misunderstood the project’s intentions at launch and subsequently smeared it. 

This led to tensions with the Base community, resulting in Friend.tech feeling ostracized from activities and events meant for the Base community.

Market Reaction

Friend.tech’s token was launched as part of the social network’s version 2 rollout, and it had garnered attention in the Web3 community for its innovative approach to social networking. The platform aimed to leverage the decentralized nature of blockchain to provide users with enhanced privacy and control over their data.

Following Racer’s posts, the Friend.tech token saw a sharp decline of around 22%. This significant drop reflects the market’s reaction to the uncertainty surrounding the project’s future on the Base network.

Base Responds

In response to Racer’s remarks, Jesse Pollak, the head of Base for Coinbase, acknowledged the feelings of isolation and disconnection expressed by the Friend.tech team. Pollak posted a diplomatic message on X, stating, 

“I’ll be sad if the team decides to leave Base, but I also respect and will support whatever path – that’s the beauty of the decentralized, onchain, economy.”

Supporting Friend.tech Team’s Decision 

Pollak’s response highlighted the decentralized nature of the blockchain ecosystem, emphasizing support for the Friend.tech team’s decision, whatever it may be.

The falling token price indicates investor concern over the potential migration from Base. Such a move could involve significant technical challenges and user disruption. Additionally, the public airing of internal issues between the project and its hosting network might have contributed to the loss of confidence among token holders.