Friend.Tech Shutters Operations

Friend.Tech, a Web3 social network where users traded tokens for access keys to influential feeds, has effectively shut down less than a year after its successful launch.

On September 8, the developers executed a function on the platform’s smart contracts, transferring control to Ethereum’s null address. This action locked the system in place and halted future changes. The team announced that no fees from smart contracts or the website go to the Friend.Tech development team.

Though the platform will still operate, the revocation of control means it’s unlikely any new features will be implemented.

Launched on the Coinbase-backed Layer 2 network Base in August 2022, Friend.Tech quickly gained popularity. By September 15, 2023, its daily earnings surpassed those of Ethereum. The top key, which unlocks the feed of pseudonymous co-founder Racer, sold for 8.9 ETH ($14,500 at that time). The protocol raised undisclosed funds from crypto VC firm Paradigm.

However, after the initial boom, trading activity dwindled, with the platform’s developers reportedly earning over $20 million in fees during its peak.

The launch of Version 2 (v2) did attract some users back, but the platform’s fees have stagnated, bringing in only about $60,000 since June. A revival seems unlikely given the lock on contract ownership and the absence of a new team willing to enhance the system.