Friend.tech co-founder, pseudonymously known as Racer, has hinted at leaving Base, an Ethereum Layer-2 network launched by Coinbase in 2023 that supports the platform.
Following the news, Friend.tech’s token fell sharply and is now trading at $1.02, with a 31.4% drop over the past day.
Racer Hints at Departure From Base
Racer posted on X about a system design bounty offering a $200,000 reward to anyone who could devise a method for migrating Friend.tech off of Base without causing significant disruptions for users. The reward would be given if the solution proved effective enough for adoption.
Racer said the relationship between the Friend.tech team and Base has been strained. In another post, they mentioned that the project faced backlash from Farcaster investors during its launch, which led to a deteriorating relationship and a sense of exclusion from the Base community.
In response, Jesse Pollak, who heads Base for Coinbase, made a diplomatic post. Pollack acknowledged that Friend.tech’s team had felt “isolated and disconnected” from certain parts of the Base and Ethereum ecosystems.
Pollack added that he would be sad if Base decided to leave but would still respect and support their chosen path.
Base Network’s Surging Activity
Friend.tech launched in August 2023, quickly generating hype and attracting both supporters and critics. The decentralized social network, built on Ethereum’s layer-2 scaling network Base, allows users to buy and sell “keys” linked to Twitter accounts.
Coinbase’s Q1 report highlighted that trading volume on the Layer 2 network surpassed that of its competitors, especially following Ethereum’s Dencun upgrade. The growth has been driven by popular projects launching on the network, such as Friend.tech and meme coins such as dogwifhat (WIF), Book of Meme (BOME).
DeFi crypto exchanges on Base experienced daily trading volumes exceeding $1 billion, significantly narrowing the gap between the L2 and Coinbase’s main centralized exchange, which trades nearly 250 cryptocurrencies.
The Dencun upgrade rapidly increased Base’s daily transaction volume and revenue, allowing it to outpace established players like Optimism and Arbitrum. This upgrade reduced costs for Layer-2 scaling chains like Base, resulting in increased user engagement and transaction volume.
According to Dune Analytics, there are currently 234,199 active addresses on Base, with 38,087 new addresses this week. Meanwhile, the network’s total profit is $42.7 million, and its total revenue is $58.67 million.
This article was originally published by a cryptopotato.com . Read the Original article here. .
Disclaimer:The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website’s content as such. BitcoinNews.best does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.