The Friend.Tech app plans to develop its own blockchain

The socialFi app Friend.Tech is preparing to launch its own blockchain powered by its own FRIEND token, definitively abandoning the Ethereum ecosystem and layer-2 Base.

The news of the new cryptographic network, which will be called Friendchain, has raised quite a bit of controversy within the platform’s community, prompting users to ask the team for explanations.

Let’s see all the details below.

Friend-Tech and the transition from decentralized app to the Friendchain blockchain

The developers of the decentralized app Friend.Tech are considering leaving the walls of the Ethereum ecosystem and the blockchain of Basic launch a proprietary crypto network.

The announcement came on Saturday 8 June, directly from the app’s official X profile, where the project team explained that it will collaborate with the infrastructure provider Conduit to build the top-level blockchain “Friendchain”.

The latter will be powered by the FRIEND tokendistributed to his community with a airdrop in early May, which will serve as a fully transferable gas token.

It has not yet been clarified when the migration from Base to the new blockchain will take place, but it is believed that the transition will probably take place in the first half of 2025.

Platform users SocialFifocused on tokenization and trading of X profiles, have not hidden their fears and doubts regarding the launch of a proprietary blockchain questionable necessity.

In this regard, trader Dr. Kojipup, commenting on the announcement of June 8, asked the Friend.Tech team how Friendchain will bring value to the decentralized app.

Others have focused on whether the new FRIEND-powered blockchain will offer higher commission costs than seen on the Base network today, after parent company Ethereum completed the Dencun update significantly reducing the cost of gas on level 2.

The only reason that could justify such a choice, which will obviously bring disadvantages on the infrastructural side, is that several app chains could be launched from the new blockchain, whose transactions would be processed in FRIEND.

In any case, the Friend.Tech team, even if it will not develop other SocialFI apps, will earn from this move by collecting the fees paid by users on Frienchain.

We recall that in the past the co-founder of the project, known as “Racer”, had expressed the desire to abandon the Base layer-2 with the aim of developing its own self-sufficient ecosystem.

The impact of this news on the price of the FRIEND token

While the Friend.Tech community asks for explanations regarding the choice to open up to a new blockchain, the FRIEND token immediately responded very well to the news, seeing its price increase on the market.

In particular, in the first 4 hours after the announcement, the crypto recorded an increase of 30%, going from 1,116 dollars to 1,468 dollars, before collapsing in the following hours and stabilizing around 1,234 dollars.

The appreciation of the cryptocurrency is due to the fact that with the launch of a new network, The FRIEND assumes that a greater utility has been designated as a gas token.

This pushed speculators to purchase the coin, realizing that in the future, to use the Friend.Tech network, it will be necessary to have it available in the wallet.

According to data from Coinmarketcapin the last 7 days the price action of the token remains negative with an overall devaluation of 67%, partly justified by the launch of the airdrop to the community.

Friends’ market capitalization is around $10.2 million, with volume in the last 24 hours of $4.5 million.

Source: https://www.gate.io/. FRIEND-USDT trading pair, 1h time frame

From here on, if the launch of Friendchain is confirmed, the evolution of the price of FRIEND will depend greatly on the success of the new blockchain and the commissions it will be able to collect.

In support of the owners of this coin we can report that the Friend.Tech app in its second week after launch exceeded the threshold of 1 million dollars in commissions, outclassing respectable platforms such as Uniswap and chains like that of Bitcoin.

From October 2023 onwards, hyper for the SocialFI app gradually declined, until attention resurfaced in April 2024, shortly before FRIEND’s unveiling in the markets.

Source: https://dune.com/msilb7/friendtech-on-base-activity

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