The decentralized social media platform, Friend.tech, has reversed its decision to migrate from the Coinbase-managed Layer 2 network, Base, to its blockchain, named Friendchain.
Initially, this decision was driven by a partnership with blockchain infrastructure provider Conduit and aimed to implement the decentralized social media platform’s native token, $FRIEND, as a fully transferable gas token.
The announcement of the migration plan left many users confused and raised numerous questions and concerns across various social media platforms.
Users were puzzled about the value proposition of a decentralized social media platform and expressed concerns about potential increases in gas fees compared to those on Base.
Public reaction was mixed, characterized by curiosity and skepticism, with some users voicing apprehensions about the decentralized social media platform’s future.
The token’s market performance mirrored the situation’s uncertainty. Following the migration announcement, $FRIEND’s price experienced a sharp spike, jumping 64% within 20 minutes to reach $1.31, before plummeting back to $0.89 within the hour, according to Cointelegraph.
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The token had previously shown similar volatility. Just a month earlier, following a significant airdrop, the largest holder, known as “Murphys1d,” sold over 55,000 newly issued tokens, leading to a substantial drop in the token’s price.
However, the decision to reverse the migration came after a notable 22% drop in the $FRIEND token’s price post-migration announcement. The all-time high for FRIEND was recorded at $3.26 on May 3, 2024, with the current price being significantly lower, indicating the impact of the migration plans on the decentralized social media platform’s value.
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