Decentralized social network Friend.Tech has received a new upgrade by launching a new naive token that can be traded on the Base network’s native decentralized exchange. According to DexScreener, the new token is currently trading at $3 with a total circulation of 14.5 million.
It was previously rumored that Friend Tech was considering introducing a non-transferable token with the POINTS ticker. The information is based on leaked smart contracts related to the release of Friend.Tech version 2, scheduled for May 3. In addition to the POINTS token, the V2 launch was expected to include a new smart contract feature called Clubs.
“A new smart contract called Club. “Anyone can create a bonding curve with multiple clubs, from a variety of options.” said X user @Cbb0fe was the first to talk about the token launch. “Platform fee 1.5%, staking contract 1.5%. Club keys can be purchased with $POINT.”
The token airdrop eventually coincided with the release of version 2 of Friend.Tech and came with a club feature.
A 1.5% fee on all transactions is passed on to the DEX’s liquidity providers. Users must join a club and follow at least 10 users on Friend.Tech to access airdropped POINTS tokens. With the launch of POINTS, Friend Tech’s native token, FRIEND, fell from a high of $169 to $2.5.
Friend.Tech Experiences Trading Halt
This V2 launch marks the re-emergence of the Web3.0 social media platform after taking a huge hit a few months ago. The protocol has generated $1.42 million in protocol fees in just 24 hours since its launch in August 2023. At this time, DefiLlama data confirms that this performance puts Friend Tech ahead of Tron and Uniswap.
This further highlighted its development as a prominent new protocol in the cryptocurrency space. In just two weeks, the platform reportedly registered more than 100,000 users and generated about $25 million in revenue. Friend Tech’s core proposition lies in a new approach to transforming social connections into tradable assets. Users can tokenize the social network by purchasing shares of other users’ profiles.
Unfortunately, the network saw a significant decline in transactions less than a month after its official launch. Daily commissions plummeted about 87% on August 26 to $225,000. Daily trading volume on the platform plummeted from $16.9 million to $953,000. Deal with friends. Technology stocks also fell more than 90% compared to their peak on August 21st.
This bearish outlook has had a negative impact on the decentralized social network. Even Ryan Wyatt, former chairman of Polygon Labs, rightly described Friend.Tech as a Ponzi scheme that couldn’t retain customers.
And in its current form, we’re basically looking at an unintentional Ponzi on a first-in, first-out basis. Because there is no product feature depth to create stickiness or retention, creators will quickly churn and users will abandon creators. .
There’s a lot of work to be done.
— Ryan Wyatt (@Fwiz) August 21, 2023
The relaunch would be an important step in correcting the negative narrative surrounding Friend.tech.
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