Friend.tech has decided to remain on the Base Layer-2 network. This reversal comes just a month after announcing plans to launch its own chain.
The decision has negatively impacted the FRIEND token price. It fell to a record low of $0.2973 on Thursday morning.
FRIEND is now trading at $0.3557, down 25% from yesterday. This represents a more than 50% drop since June 10.
Friend.tech launched in August 2023. It aimed to create a monetized social media network.
The platform allows influencers to create "shares" of themselves. These were later renamed "keys" due to regulatory concerns.
Interest in the project waned after its initial launch. It saw a resurgence in May 2024 with the announcement of an airdrop and version 2 launch.
"$FRIEND was always meant to be a 100% community-controlled token," the team stated on Twitter. They emphasized that users can still access all features on Base.
The project has also disabled protocol fees for BunnySwap, its native decentralized exchange. BunnySwap's total value locked has fallen from a peak of $53 million to $10.6 million.
Crypto Quant analyst Bradley Park commented on the situation. "FT was originally one of the leading contributors to the Base boom," he told Decrypt. "However, overshadowed by growth of Farcaster, FT announced that it would move to another chain."
Park noted that community sentiment has turned negative. Large wallet holders have been exiting their positions, contributing to the price drop.