Friend.tech Completes On-Chain Transaction for Ownership Transfer

Last updated: December 4, 2023 00:09 EST
. 1 min read

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Exchange of keys — Source: Adobe / Joaquin Corbalan

Friend.tech, a decentralized social app built on Coinbase’s blockchain Base, has successfully transferred the ownership of its smart contract and funds to “a new combination of multisig and professional custody.”

The news that the necessary on-chain transactions to transfer the ownership had been completed was shared by Friend.tech on X this weekend, with the team saying the move will was necessary to improve security and compliance with tax rules.

“These changes will improve the long term security of friendtech and allow us to fulfill tax obligations,” the post said.

We have completed onchain transactions to transfer ownership of the friendtech contract and funds to a new combination of multisig and professional custody.

These changes will improve the long term security of friendtech and allow us to fulfill tax obligations

— friend.tech (@friendtech) December 2, 2023

Friend.tech’s move of funds to a more secure multisig custody solution followed an incident from October this year when a scammer got away with around $400,000 in 24 hours by targeting Friend.tech users with so-called SIM-swapping attacks.

In a post on X at the time, blockchain sleuth ZachXBT revealed that the scammer had stolen 234 ETH over the past 24 hours by SIM-swapping four different Friend.tech users.

The same scammer profited $385K (234 ETH) in the past 24 hours off SIM swapping four different FriendTech users. pic.twitter.com/03BoBEqGax

— ZachXBT (@zachxbt) October 4, 2023

Launched in August

Friend.tech launched on the new Base blockchain as recently as in August this year, and has already accumulated revenues of more than $25 million, according to data from DeFiLlama.

In terms of user fees, Friend.tech has now generated close to $52 million on a cumulative basis.

The fees are derived from taxing around 10% of the trading volume of social tokens.

Frend.tech fee chart — Friend.tech fees and revenue. Source: DeFiLlama

The platform made headlines in October when data showed that the platform had generated revenues of over $20 million after being live for just two months.

Friend.tech serves as a platform that enables users to link their X accounts and facilitates the buying and selling of influencer profile tokens, known as “keys,” using ETH on the Ethereum-based layer 2 network Base.