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On Monday, the native token FRIEND of FriendTech, a decentralized social network platform, experienced an astounding 30% decline. The price of native tokens fell sharply as the Web3 firm's community revealed that it had given up authority over smart contracts. The main cause of this smart contract loss is a function that was carried out on the ecology of the project.
Developers of FriendTech Reject Smart Contracts
"Admin and ownership parameters have been set to address 0x000…000, to prevent any changes to the fees or functionality in the future," reads a September 8 official X post from FriendTech. This is consistent with a function that was carried out by the platform's smart contracts, which moved their authority to an Ethereum null address.
The group made it clear that the independent web client running under the domain "friend.tech" is unaffected by this change in ownership. Furthermore, the announcement stated that no fees from this domain or smart contracts currently flow to the dev team multisig wallet.
The Web3 social network FriendTech, which was initially launched on layer 2 Base, which is backed by Coinbase, has recently suffered a major setback in the Web3 market. Control over smart contracts is transferred, increasing the likelihood that no new features will be added to the platform. Both the market and the users are suffering as a result of this.
The price of FRIEND Token drops
As of this writing, FRIEND has dropped 40% in the last day and is trading at $0.07969. The coin's intraday low was valued at $0.06026, while its high was $0.3065. Notably, the coin's 24-hour trading volume reached $489,915, a rise of 87.65% over the previous day. Furthermore, the platform's declining price movement corresponds with the transfer of control from smart contracts, making the addition of new features improbable.
The network's daily transaction volume reached a record low this year, according to data from Into The Block, which is consistent with the native token's declining trend. The project's growth has stagnated despite the FriendTech V2 launch and airdrop going live earlier this year. Investors are becoming concerned as a pessimistic sentiment has recently surrounded the token.
