On Sept. 8, the workforce behind the decentralized social media protocol Buddy.Tech transferred management of its good contract to Ethereum’s null deal with, successfully relinquishing management of the mission one 12 months after its profitable launch.
In a social media submit on X, the workforce said:
“Admin and possession parameters have been set to 0x000…000 to forestall any modifications to their charges or performance sooner or later.”
Regardless of this, the online consumer at Buddy.Tech will proceed to function as traditional. The workforce additionally clarified, “No charges from both the good contracts or Buddy.Tech presently go to the dev workforce 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 keeping with CryptoSlate information at press time.
Whereas the workforce has not supplied a transparent cause for this transfer, CryptoSlate’s evaluation of on-chain information highlights the platform’s steep decline in reputation.
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 group.
By September 2023, the protocol’s each 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.
Nevertheless, the hype light because the platform struggled to take care of 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 person engagement. Dune Analytics information reveals 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 keeping with DeFillama information. Throughout the identical interval, the platform generated lower than $10,000 in charges.
Crypto group reacts
Buddy.Tech’s downfall drew widespread criticism from the crypto group, notably concerning the workforce’s dealing with of the mission.
Calvin Chu, a core builder at Unattainable Finance, voiced his disappointment, saying, “Buddy.Tech had turn out to be extra of a lab experiment than a real social finance mission.” He additional expressed frustration over being “rugged” by the choice to close down future upgradeability, which, in his view, ended any hope for additional improvement.
Equally, Mikko Ohtamaa, the CEO of Buying and selling Technique, added that Buddy.Tech was a major instance of monetizing hype and rapidly cashing out.
