Friend.tech Co-Founder Hints at Departure From Base, Token Falls 30%

The co-founder of Friend.tech, known as Racer, has hinted at leaving Base, an Ethereum Layer-2 network launched by Coinbase in 2023 that supports the platform.

After the news, the Friend.tech code He falls sharply and is now trading at $1.02, with a decline of 31.4% over the past day.

Hints the rider when leaving from the base

Racer posted on The reward will be awarded if the solution proves effective enough to be adopted.

The only way to migrate is to convince everyone to sell their keys, compensate the treasury for their losses, and then start new things

GG to this fee farm. $friend At $1, there are almost no organic users, and Racer wants to break from the norm. I still carry a bag from when I fell in love $friend To ten psychological 😭 pic.twitter.com/39tRVb5mmM

-AzFlin (@AzFlin) May 26, 2024

Racer said the relationship between the Friend.tech team and Base is tense. In another post, they mentioned that the project faced backlash from Farcaster investors during its launch, which led to a deteriorating relationship and a feeling of exclusion from the Base community.

In response, Jesse Pollack, who heads Coinbase, took a diplomatic position. Pollack I confess That the Friend.tech team felt “isolated and disconnected” from certain parts of the Base and Ethereum ecosystems.

Pollack added that he would be sad if Pace decided to leave, but that he would still respect and support the path he chose.

Increased activity of the core network

Launched in August 2023, Friend.tech quickly generated buzz, attracting supporters and critics. The decentralized social network, built on top of Ethereum's layer-2 scaling network, allows users to buy and sell “keys” associated with Twitter accounts.

Coinbase's Q1 report highlighted that trading volume on the layer 2 network exceeded that of its competitors, especially after Dencun's upgrade of Ethereum. The growth was driven by popular projects launched on the network, such as Friend.tech and meme currencies such as dogwifhat (WIF), and Book of Meme (BOME).

DeFi cryptocurrency exchanges on Base have seen daily trading volumes exceed $1 billion, significantly narrowing the gap between L2 and Coinbase's main central exchange, which trades approximately 250 cryptocurrencies.

Upgrading Dencun quickly increased Base's transaction volume and daily revenue, allowing it to outperform established players like Optimism and Arbitrum. This upgrade reduced the costs of Layer 2 scaling chains such as Base, resulting in increased user engagement and transaction volume.

according to Dune analysesThere are currently 234,199 active titles on Base, with an additional 38,087 new titles this week. Meanwhile, the network's gross earnings are $42.7 million, and its total revenue is $58.67 million.