Friend.tech Announces Plans to Develop Friendchain Blockchain: Why the Decision?

Decentralized social media platform Friend.tech has caused a stir in the crypto community with its recent announcement to develop its own blockchain, Friendchain. The decision has left many users questioning the move, with some asking, “Why?”

In response to Friend.tech’s announcement, crypto trader Dr. Jojipup raised the question of the value proposition of a social-focused chain. Others, like pseudonymous crypto commentator ox0 and Gaslite co-founder Pop Punk, also expressed skepticism about the need for a blockchain in this context.

One concern raised by users is whether the transition to Friendchain would result in higher gas fees compared to the current Base network, known for its low-cost Ethereum layer-2 solution.

Despite the skepticism, the announcement sparked a surge in Friend’s price, with the token jumping 64% within 20 minutes of the news. However, the price quickly dropped back down within the hour, showcasing the volatility of the crypto market.

This price fluctuation comes just a month after Friend.tech launched the token and conducted a major airdrop. The platform saw record transaction activity on the day of the airdrop, with the largest whale selling a significant amount of Friend tokens.

Friend.tech has seen significant growth since its launch in August 2023, with transaction fees surpassing $1 million in a single day shortly after its debut. The platform’s revenue has also surged, with TVL topping 30,000 ETH.

Cointelegraph has reached out to Friend.tech for comment on the recent developments but has not received a response at the time of publication. The crypto community will be watching closely to see how Friendchain unfolds and whether it can deliver on its promises in the competitive blockchain space.