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Friend.tech’s Plan to Develop Its Own Blockchain Leaves Users Confused — TradingView News
Decentralized social media platform Friend.tech, built on the Coinbase layer-2 Base network, has announced plans to develop its own blockchain, Friendchain, but the decision to do so has left many users wondering why.
“No hate, just a genuine question: What is the value proposition of a socially focused chain?” asked cryptocurrency trader Dr. Kojipup in response to Friend.tech’s June 8 announcement about X, explaining that he will work with crypto infrastructure startup Conduit to develop and transition to its own blockchain. Friend.tech added that it will use its native token, FRIEND, as a “fully transferable gas token.”
“Why do you need a blockchain?” added pseudonymous crypto commentator ox0, while Pop Punk, co-founder of gas auditing firm Gaslite, commented: “why?”.
Meanwhile, others have expressed concerns that this would mean gas fees would be higher than those of Base, often called a “low-cost” Ethereum layer-2 solution.Cointelegraph
However, the announcement piqued the interest of traders as the price of FRIEND saw a sharp increase shortly after.
The price of FRIEND skyrocketed following the announcement
FRIEND jumped 64% within 20 minutes of the announcement, reaching $1.31, before quickly falling back to $0.89 within an hour, according to data from CoinMarketCap.
FRIEND’s significant price fluctuation comes just a month after Friend.tech launched the token alongside a major airdrop.
Just hours after Friend.tech’s airdrop went live on May 3, the largest whale, known as “Murphys1d,” sold over 55,000 newly issued tokens.