Decentralized social network Friend.Tech just bagged a new upgrade by pushing out its new naive token for trading on its native decentralized exchange on the Base network. According to DexScreener, the new token is currently trading at $3 with a total circulating supply of 14.5 million.
It was earlier rumored that Friend Tech is possibly considering introducing a non-transferable token with the ticker POINTS. The information was based on a leaked smart contract related to the version 2 launch of Friend.Tech, scheduled for May 3. Aside from the POINTS token, the V2 launch was expected to come with a new smart contract feature called Clubs.
“New smart-contract called Clubs. Anyone can create multiple clubs and a bonding curve among several options,” said @Cbb0fe, the X user who first talked about the token launch. “1.5% platform fee and 1.5% staking contract. Club keys are bought with $POINT.”
The token airdrop eventually coincided with the launch of Friend.Tech’s version 2 and it came with the Clubs feature.
The 1.5% fee on every transaction will go to liquidity providers on its DEX. Users are required to join one Club and follow a minimum of 10 users on Friend.Tech to gain access to their airdropped POINTS token. With the launch of POINTS, Friend Tech’s native token FRIEND has slumped to $2.5, down from a high of $169.
Friend.Tech Suffers Sign Drop in Transaction
This V2 launch marks a re-emergence for the Web3.0 social media platform after it dealt a huge blow a few months ago. The protocol was launched in August 2023 after which it generated protocol fees of $1.42 million within just 24 hours. At this time, DefiLlama data confirmed that the achievement placed Friend Tech ahead of Tron and Uniswap.
This further highlighted its development as an emerging prominent protocol in the crypto space. In a period of two weeks, the platform allegedly registered over 100,000 users and generated about $25 million. Friend Tech’s core proposition lies in its novel approach to turning social connections into tradable assets. Users can tokenize their social networks by purchasing shares of other users’ profiles.
Unfortunately, the network saw a significant drop in transactions in less than one month of its official launch. Its daily fees plummeted on August 26 by about 87% and rested at $225,000. Daily trading volume on the platform plunged from $16.9 million to $953,000. Transactions on Friend. tech also fell by over 90% from its peak on August 21.
This bearish outlook impacted negatively on the decentralized social network. Even the former President of Polygon Labs Ryan Wyatt justifiably described Friend.Tech as a Ponzi scheme that cannot retain customers.
And in it's current form you're basically looking at an unintended ponzi w/ first in/first out because there isn't any product feature depth to create stickiness or retention, so creators will churn quickly, users will be left exiting creators, etc.
A lot of work to be done.
— Ryan Wyatt (@Fwiz) August 21, 2023
The relaunch is likely a major step towards correcting the negative narrative surrounding Friend.tech.
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