The decentralised social media network Friend.tech has revealed that it will be working with Conduit to create Friendchain, a blockchain of its own.
The decision to create Friendchain, the decentralised social media site Friend.tech, which is based on the Coinbase layer-2 network Base, has many users wondering, “Why?”
Crypto trader Dr. Jojipup responded to Friend.tech’s June 8 announcement on X with, “No hate, just a genuine question, What is the value proposition of a social-focused chain?” Friend.tech said it will be collaborating with cryptocurrency infrastructure firm Conduit to develop its own blockchain. Additionally, Friend.tech stated that it will employ Friend (FRIEND), its native token, as a “fully transferable gas token.”
“What is the purpose of a blockchain?” added anonymous crypto commenter ox0, and Pop Punk, co-founder of the gas auditing company Gaslite, asked “why.”
Others expressed worries about whether this would mean petrol fees would be more than those on Base, which is frequently mentioned as a “low-cost” Ethereum layer-2 option.
But the statement caught traders off guard, as Friend’s price spiked sharply shortly after.
CoinMarketCap data shows that after 20 minutes of the news, Friend surged 64% to $1.31 before swiftly falling down to $0.89 inside an hour.
Only one month has passed since riend.tech introduced the token and held a sizable airdrop, before there has been a notable swing in the price of Friend.
The biggest whale, referred to as “Murphys1d,” sold more over 55,000 of the freshly issued Friend tokens in the few hours following the Friend.tech airdrop’s launch on May 3.On that same day, Friend.tech’s transaction volume reached a record high. After a robust launch in August 2023, the platform had been steadily declining.
In August 19, just one week after Friend.tech’s launch, its fees exceeded $1 million in a single day, surpassing both Uniswap and the Bitcoin network.