Friend.tech, a Web3 social media platform, is under scrutiny following allegations of a rug pull.
The controversy erupted after the platform’s team relinquished control of the project’s smart contracts on September 8, setting the admin parameters to Ethereum’s null address to prevent future alterations to fees or functions. This move led to a 26% drop in the value of the Friend.tech (FRIEND) token within 24 hours.
Crypto analyst Waleswoosh criticized Friend.tech on X, accusing it of being a “Ponzi scheme” that shifted from a social finance app to complex trading.
The analyst claimed that during its peak, the platform’s creators made grand promises to key holders, and the team collected over $60 million in fees.
According to Lookonchain, the team sold 19,477 ETH, approximately $52 million, between December 2023 and June 2024, and the token’s value has plummeted by 95% since launch.
Despite these issues, Friend.tech’s team announced on September 10 that they will continue operating the app and clarified that their recent changes only prevent future fee adjustments on the Base layer-2 platform, not affecting the app’s current functionality.
It is still unclear when the next interest rate hike by the Bank of Japan (BOJ) could be, and analysts are split between October and December.
Russia is piloting a new legal framework aimed at enabling cryptocurrency payments for international trade.
Former President Donald Trump has launched a new cryptocurrency venture called World Liberty Financial, aiming to reshape the digital currency world ahead of the 2024 presidential election.
The Linux Foundation has launched a new entity, the Linux Foundation Decentralized Trust (LFDT), aimed at uniting open-source projects for decentralized technologies.