Investigating claims of a rug pull following the last surrender of control over its smart contracts by the project’s behinders is in progress. The Friend.tech team reported on September 8 that their smart contracts’ administrative and ownership restrictions were assigned to Ethereum’s null address.
This meant that features or pricing of the site could not be modified. Within barely 24 hours of the announcement, FRIEND’s token value dropped shockingly 26%.
Fake crypto researcher Waleswoosh said Friend.tech was dragging a rug from under Friend’s feet on X (formerly Twitter). Waleswoosh started a long thread analyzing the project and calling it a “Ponzi scheme,” effectively turning SocialFi software into a smart trading instrument.
The analyst claims that at the height of the platform, its creators made crazy claims to important users, one of which included airdrops.
Friend.tech Faces Scrutiny As Token Value Plummets 95%
Waleswoosh further noted that the ETH team brought in around $60 million for the project. Selling 19,477 Ether somewhere between December 2, 2023, and June 11, 2024, the Friend.tech team made over $52 million. Lookonchain further underlined the astounding 95% decline in the price of the token after first distribution.
Friend.tech addressed community concerns on declining token value and fees in a September 10 release. The crew made it really apparent that they meant not to discontinue Friend.tech, an online business.
Their most recent operations were obviously aimed to ensure that the Base of Layer-2 would not be strained for any more. The team told users the app would remain functional and the platform would run as usual.
Waleswoosh and other critics of the company’s operations even with these guarantees now find friend.tech coins and keys “worthless.” Originally seen as a possible Instagram competitor, users are not so sure about the site today and its value is dropping.
