Friend.tech, once a rising star in the Web3 social media scene, has taken a dramatic turn.
According to trending crypto news, Web3 social media platform Friend.tech is facing rug pull accusations after the team unexpectedly relinquished control over the project’s smart contracts.
On September 8, the Friend.tech team revealed they had permanently set the admin and ownership controls to Ethereum’s null address.
This move ensures no future modifications can be made to the platform’s fees or functions. However, the decision sent shockwaves through the community, causing the FRIEND token to plunge by 26% in just 24 hours.
In response to the news, pseudonymous crypto analyst Waleswoosh declared in a post on X that “Friend.tech rugged.” The analyst criticized the platform, labeling it a “Ponzi” scheme, claiming it had shifted from a SocialFi app into a tool for speculative trading.
According to Waleswoosh, during Friend.tech’s peak, creators made extravagant promises to their key holders, with one even vowing to distribute airdrops among them. Meanwhile, the platform’s team reportedly raked in over $60 million in fees.
Blockchain analytics platform Lookonchain further exposed that between December 2, 2023, and June 11, 2024, the Friend.tech team sold 19,477 ETH, amounting to around $52 million. Since its launch, the token’s price has nosedived by 95%.
Once hailed as a potential “next Instagram,” the platform’s buzz died down after a much-anticipated airdrop, with many users selling off their tokens and moving on. With the latest developments, Waleswoosh believes that Friend.tech tokens and keys are now essentially “worthless.”
Despite the backlash, on September 10, the Friend.tech team released a statement addressing the community’s concerns. They clarified that there are no plans to discontinue the platform and reassured users that the recent changes merely ensure that no new fees will be introduced on the Base layer-2 platform. They also emphasized that the app’s core functionality remains unchanged.
