In a surprising turn of events, decentralized social media platform Friend.tech has decided to reverse its previous announcement and stay on Coinbase-incubated layer-2 network Base. The team had initially planned to leave Base and launch its own chain, but they have now chosen to keep their token and liquidity on Base. This decision has had a significant impact on the price of the FRIEND token, which has plummeted to an all-time low of $0.2973, marking a 25% decrease from the previous day [e63443b2].
Friend.tech, which allows users to monetize their influence on a social media network, has faced skepticism since its launch in August 2023. The project's decision to stay on Base has raised questions about its long-term viability and strategic direction. The team has stated that migrating the token's supply and liquidity would not align with the community-controlled nature of the token. Additionally, the project has turned off protocol fees for its decentralized exchange, BunnySwap.
Analysts believe that the price drop of the FRIEND token is also influenced by whale wallets exiting their positions. The sudden reversal of Friend.tech's decision and the uncertainty surrounding the project's future have likely contributed to the loss of appeal among investors. The price drop highlights the volatility and risks associated with investing in cryptocurrencies, particularly in projects that face skepticism and undergo significant strategic shifts [e63443b2].