On Sept. 8, the staff behind the decentralized social media protocol Buddy.Tech transferred management of its sensible contract to Ethereum’s null deal with, successfully relinquishing management of the undertaking one 12 months after its profitable launch.
In a social media submit on X, the staff said:
“Admin and possession parameters have been set to 0x000…000 to forestall any adjustments to their charges or performance sooner or later.”
Regardless of this, the online consumer at Buddy.Tech will proceed to function as normal. The staff additionally clarified, “No charges from both the sensible contracts or Buddy.Tech presently go to the dev staff multisig.”
Following the announcement, the platform’s native token FRIEND plummeted by over 47% in 24 hours, reaching an all-time low of $0.06026, in line with CryptoSlate information at press time.
Whereas the staff has not offered a transparent purpose for this transfer, CryptoSlate’s evaluation of on-chain information highlights the platform’s steep decline in recognition.
Friendtech’s decline
Buddy.Tech, launched in August final 12 months on Coinbase’s Layer 2 community Base, initially gained speedy traction within the crypto neighborhood.
By September 2023, the protocol’s every day earnings surpassed Ethereum’s, and its high keys fetched excessive costs. Across the interval, the platform additionally raised an undisclosed seed spherical from crypto VC agency Paradigm.
Nonetheless, the hype pale because the platform struggled to keep up momentum. It confronted a number of challenges, together with sim swap assaults and mismanaged plans to exit the Base blockchain.
These points contributed to a pointy decline in consumer engagement. Dune Analytics information exhibits the platform’s transaction quantity dropped by 99%, and by September, it was failing to draw new customers.
This decline inadvertently severely impacted income, which fell to only $21 during the last 30 days, in line with DeFillama information. Throughout the identical interval, the platform generated lower than $10,000 in charges.
Crypto neighborhood reacts
Buddy.Tech’s downfall drew widespread criticism from the crypto neighborhood, notably concerning the staff’s dealing with of the undertaking.
Calvin Chu, a core builder at Not possible Finance, voiced his disappointment, saying, “Buddy.Tech had grow to be extra of a lab experiment than a real social finance undertaking.” He additional expressed frustration over being “rugged” by the choice to close down future upgradeability, which, in his view, ended any hope for additional growth.
Equally, Mikko Ohtamaa, the CEO of Buying and selling Technique, added that Buddy.Tech was a first-rate instance of monetizing hype and shortly cashing out.
