Generating only $21 in revenue in 30 days, FriendTech relinquishes control of contracts

On Sept. 8, the workforce behind the decentralized social media protocol Pal.Tech transferred management of its good contract to Ethereum’s null handle, successfully relinquishing management of the mission one 12 months after its profitable launch.

In a social media publish on X, the workforce stated:

“Admin and possession parameters have been set to 0x000…000 to stop any adjustments to their charges or performance sooner or later.”

Regardless of this, the online consumer at Pal.Tech will proceed to function as standard. The workforce additionally clarified, “No charges from both the good contracts or Pal.Tech at present go to the dev workforce multisig.”

Following the announcement, the platform’s native token FRIEND plummeted by over 47% in 24 hours, reaching an all-time low of $0.06026, in line with CryptoSlate data at press time.

Whereas the workforce has not supplied a transparent purpose for this transfer, CryptoSlate’s evaluation of on-chain knowledge highlights the platform’s steep decline in reputation.

Friendtech’s decline

Pal.Tech, launched in August final 12 months on Coinbase’s Layer 2 community Base, initially gained rapid traction within the crypto neighborhood.

By September 2023, the protocol’s day by day earnings surpassed Ethereum’s, and its high keys fetched excessive costs. Across the interval, the platform additionally raised an undisclosed seed spherical from crypto VC agency Paradigm.

Nevertheless, the hype pale because the platform struggled to take care of momentum. It confronted several challenges, together with sim swap attacks and mismanaged plans to exit the Base blockchain.

These points contributed to a sharp decline in user engagement. Dune Analytics data exhibits the platform’s transaction quantity dropped by 99%, and by September, it was failing to draw new customers.

This decline inadvertently severely impacted income, which fell to only $21 during the last 30 days, in line with DeFillama knowledge. Throughout the identical interval, the platform generated lower than $10,000 in charges.

Crypto neighborhood reacts

Pal.Tech’s downfall drew widespread criticism from the crypto neighborhood, notably concerning the workforce’s dealing with of the mission.

Calvin Chu, a core builder at Not possible Finance, voiced his disappointment, saying, “Pal.Tech had grow to be extra of a lab experiment than a real social finance mission.” He additional expressed frustration over being “rugged” by the choice to close down future upgradeability, which, in his view, ended any hope for additional improvement.

Equally, Mikko Ohtamaa, the CEO of Buying and selling Technique, added that Pal.Tech was a chief instance of monetizing hype and rapidly cashing out.