Friend.tech, a key player in web3 social networking, has announced its partnership with Conduit to develop Friendchain, a new native blockchain. This blockchain initiative aims to utilize the FRIEND token as a transferable gas token within its ecosystem.
The announcement has resulted in an immediate 15% surge in the value of the FRIEND token, reflecting investor enthusiasm and market confidence in the project’s potential.
Friend.tech Announces Friendchain Development with Conduit
On June 8, Friend.tech unveiled plans to develop Friendchain, its proprietary blockchain that will utilize the FRIEND token as a fully transferable gas token. Despite the announcement, specific details about the project’s launch timeline remain undisclosed. The platform expressed enthusiasm about collaborating with Conduit on this initiative, promising to provide updates as they progress in building this new blockchain.
The decision to develop Friendchain aligns with earlier statements from the project’s co-founder, Racer, who hinted at potential dissatisfaction with the Ethereum layer-2 network Base, backed by Coinbase. In May, Racer offered a substantial reward of $200,000 for developers capable of smoothly migrating the platform away from Base, citing feelings of alienation from the ecosystem.
The announcement of Friendchain has sparked mixed reactions within the community. Some analysts view it as a natural evolution for successful decentralized applications to transition into independent chains. However, others caution that such a move could potentially hinder growth and ecosystem integration.
Mixed Reactions to FriendTech’s Friendchain Decision
A prominent advocate for FriendTech, known as The Giver on the social media platform X, has characterized FriendTech’s decision to develop Friendchain as “short-term bullish and mid-term bearish” for the crypto venture. According to the analyst, FriendTech should prioritize maximizing user acquisition to establish a robust user base, potentially leveraging connections through the Base and Solana blockchains.
The advocate elaborated on the long-term vision, emphasizing the goal for backers and investors to benefit from protocol fees and eventually exit at a Software-as-a-Service (SaaS) multiple akin to Web2 companies. However, he expressed concern that Friend.tech’s current focus on capturing on-chain value may be premature, highlighting a disconnect between the platform’s initial and future phases.
Since its launch in August 2023, Friend.tech has been a prominent SocialFI decentralized application (dApp) on the Base network. At its peak, the platform processed a daily transaction volume exceeding 500,000, but recent data from a Dune Analytics dashboard indicates a significant decline to fewer than 1,000 transactions per day.
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