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 real question, what is the value proposition of a community-driven series?” asked cryptocurrency trader Dr. Gojipop in response to Friend.tech’s announcement on the 8th June regarding its blockchain. Friend.tech added that it will use its native blockchain. token, Friend (FRIEND), as a “fully transferable gas token”.
“Why do you need blockchain? » “Why,” added a cryptocurrency commenter under the pseudonym ox0, while Bob Bank, co-founder of gas auditing firm Gaslite, commented.
Meanwhile, others have expressed concerns over whether this means gas fees will be higher than those of Base – which is often referred to as a “low-cost” layer 2 Ethereum (ETH) solution.
However, this announcement piqued traders’ interest as Friend’s price saw a sharp rise shortly after.
Friend Price Increased Significantly After Announcement
Friend’s price jumped 64% in the 20 minutes following the announcement, reaching $1.31, before quickly falling to $0.89 within an hour, according to CoinMarketCap data.
Friend’s huge price volatility comes just a month after riend.tech launched the token with a significant drop.
Just hours after Friend.tech went live on May 3, the largest whale, known as “Murphys1d,” sold over 55,000 newly issued Friend tokens.
about: Friend.tech revenue exceeded 10,000 ETH, TVL exceeded 30,000 ETH
The same day saw a record number of transactions on Friend.tech, which has remained noticeably stagnant since its strong launch in August 2023.
Just a week after Friend.tech launched, its fees surpassed $1 million in 24 hours on August 19, beating Uniswap and the Bitcoin network.
Cointelegraph reached out to Friend.tech for comment but did not receive a response at the time of publication.
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