Friend.tech, a leading player in the Web3 social networking space, announced plans to collaborate with Conduit, a leading crypto infrastructure service provider, to develop native Blockchain. Following this news, the altcoin price rose 15 percent, defying the decline in the market.
friend.tech, made an important partnership announcement, altcoin price jumped!
Friend.tech has announced plans for Friendchain, a proprietary blockchain that will use the FRIEND token as a fully transferable gas token. However, the platform did not specify a specific launch timeline for the project. In this context, the altcoin project made the following statement:
We are pleased to be working with Conduit on Friendchain, our own blockchain that uses FRIEND as a fully transferable gas token. We’ll keep you updated with all the information you need over the coming months as we build this exciting new chapter.
Following the news, the platform’s native FRIEND token saw a nearly 15% increase. With this move, FRIEND reached $0.96. However, he later experienced some altitude loss. At the time of writing, the altcoin was changing hands at $0.9108, up 10.7% on a daily basis.
The latest announcement sparked various reactions within the community!
By the way, this decision is not a surprise, considering the recent statements of Racer, the co-founder of the project. cryptokoin.com As we reported in May, Racer discussed potentially leaving the Coinbase-backed Ethereum layer-2 network base due to a sense of alienation from the ecosystem. At the time, it offered a $200,000 bounty for any developer who could seamlessly migrate the platform from Base without major disruptions.
Still, the project’s recent announcement sparked a variety of reactions within the community. Some analysts see this as a natural progression. He also suggests that successful decentralized applications will eventually evolve into independent Blockchains. But others warn the move will hinder growth.
Short and medium term implications for altcoin
A prominent FriendTech advocate known as The Giver on social media platform X described the decision as “short-term bullish and medium-term bearish” for the crypto startup. According to the analyst, FriendTech should prioritize maximizing user acquisition to build a solid user base, ideally leveraging connections via Base and Solana Blockchain. In this context, The Giver said:
The ultimate long-term vision is for backers/investors to continue clipping protocol fees and exit with a SaaS multiple into a Web2 company with a Web3 portal for monetized social media. It’s very hedonistic for Friend.tech to try to capture the value accruing to the chain today. The disconnect between v1 (where value is actually produced) and v2 (clubs, FP remortgaging) still needs to be resolved.
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