Decentralized social media network Friend.tech recently unveiled intentions to develop its own blockchain architecture, titled Friendchain, triggering surprise and confusion among its user base. The platform, which operates on Coinbase’s Base layer-2 network, made this announcement in partnership with Conduit and cited their intent to use Friend’s native currency (FRIEND) as a fully transferable gas token.
This strategic move prompted a wave of curiosity and skepticism among the platform’s community. Many are left questioning the necessity of a social-focused chain while others express concern over potentially higher gas fees compared to those on base, the so-called low-cost Ethereum layer-2 solution.
Nevertheless, the announcement brought about a drastic effect in Friend’s market valuation as it surged by a staggering 64% within 20 minutes of the announcement. It hit a high of $1.31 but quickly retraced to $0.89 within the same hour, according to CoinMarketCap.
The Friend token was recently launched in May, and this considerable price surge comes shortly after a major airdrop event by Friend.tech. The largest transaction made in the wake of this event was by an investor known as “Murphys1d,” who sold over 55,000 of the newly distributed Friend tokens.
Friend.tech’s transaction activities peaked on the same day, dramatically outpacing levels seen since its robust inception in August 2023. Just a week after its launch, the platform’s fees outclassed both Uniswap and the Bitcoin network, exceeding $1 million in 24 hours on August 19.