Coin Edition -
- Friend.tech, a social media platform, is building its own blockchain called Friendchain.
- Friendchain will use the platform’s native token, FRIEND.
- The move is controversial, with experts questioning its necessity and potential drawbacks.
The decentralized social media platform Friend.tech, built initially on Coinbase’s layer-2 network Base, has announced its plan to create a proprietary blockchain named Friendchain. Friend.tech disclosed the new move via its official X account yesterday, June 8.
According to the notification, Friend.tech is building the proposed blockchain with crypto infrastructure startup Conduit. Also, the platform plans to utilize its native token, FRIEND, on the new blockchain.
We're pleased to be working with @conduitxyz on Friendchain, our own blockchain that uses $FRIEND as a fully transferable gas token.We'll keep you up-to-date with all the info you need over the coming months as we build out this exciting new chapter. pic.twitter.com/HRa26vfFEX— friend.tech (@friendtech) June 8, 2024
However, this announcement has garnered significant criticism from industry pundits who question the necessity of a blockchain dedicated to social media functions. “What is the value proposition of a social-focused chain?” asked Dr. Jojipup of trading platform AstraBit.
Amogh Gupta of the Sui Foundation expressed concerns about the move from the Base blockchain to a less battle-tested and more centralized infrastructure. In registering his disapproval, he recalled that Conduit was the RaaS provider for the Degen chain that previously went down for over 24 hours.
Siong, the co-founder of Jupiter Exchange, questioned the effectiveness of the narrative surrounding the launch of a new blockchain in an era where creating one’s own Layer 2 is as simple as a single click.
Adding to the critical voices, Mothu et Doria, an Architect at Kinode OS, sarcastically highlighted the potential for increased utility and scalability that a new blockchain could bring to Friend.tech’s platform amid existing issues with the app’s performance and features.
Besides, commenters also raised concerns about the potential for increased gas fees on Friendchain, as Base is known for being a low-cost Ethereum layer-2 solution.
Despite the mixed reactions, the market reacted swiftly to the news. Friend’s price experienced a dramatic surge, soaring 64% to $1.31 post-announcement, only to settle back to $0.89 within the hour.
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