The price of Friend. tech’s token took a significant hit today, dropping over 29%, after the platform’s co-founder, known pseudonymously as Racer, hinted at leaving the Ethereum Layer-2 network Base.
This sudden decline follows Racer’s social media posts, now a deactivated account, expressing dissatisfaction with their relationship with Base, a network created by Coinbase.
In one of the posts, Racer offered a $200,000 bounty for a solution to migrate Friend.tech off of Base without causing major issues for users.
“System design bounty: If you can figure out a way to migrate Friend.tech off of Base without causing major issues for users, and it works well enough that we decide to use it, we will pay you $200K,”
Racer wrote.
Tension has been brewing between Friend.tech and Base, as Racer detailed the rocky relationship that has led to their decision to potentially leave.
“Farcaster investors went apeshit smearing us when we launched because they misunderstood what we were doing. Pushed it really hard on their team and users and the relationship has been downhill since then with us getting ostracised from anything that is for the ‘Base community’,”
Racer elaborated in another post.
In response, Jesse Pollak, head of Base for Coinbase, acknowledged the strained relationship and expressed a supportive stance regardless of Friend.tech’s decision.
“I’ll be sad if the team decides to leave Base, but I also respect and will support whatever path – that’s the beauty of the decentralized, on-chain economy,”
Pollak wrote in response.
Friend.tech, a decentralized social network that allows users to tokenize their social connections, has rapidly gained traction since its launch. Built on Base, Friend.tech operates by allowing users to buy and sell shares of their connections, taking a 5% fee on transactions.
RELATED: SocialFi Tokens Surge Amid Revived Interest in Friend.tech Project
Despite its initial success, Friend.tech has faced significant challenges. A security breach, a few months after its launch, exposed the details of over 101,000 users, including Base wallet addresses and corresponding X usernames. The data leak, alongside concerns raised by Spot On Chain analysts about the exposure of user data through Friend.tech’s API, has put the platform’s security mechanisms under scrutiny. These issues, combined with the current upheaval related to Racer’s departure hints, cast a shadow over the platform’s future.
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