Pal.tech’s Transfer to Friendchain: A Daring Leap or Dangerous Gamble?

• Pal.tech, a social media platform, is constructing its personal blockchain referred to as Friendchain.
• Friendchain will use the platform’s native token, FRIEND.
• The transfer is controversial, with specialists questioning its necessity and potential drawbacks.

The decentralized social media platform Pal.tech, constructed initially on Coinbase’s layer-2 community Base, has introduced its plan to create a proprietary blockchain named Friendchain. Pal.tech disclosed the brand new transfer by way of its official X account yesterday, June 8. 

In line with the notification, Pal.tech is constructing the proposed blockchain with crypto infrastructure startup Conduit. Additionally, the platform plans to make the most of its native token, FRIEND, on the brand new blockchain.

Nonetheless, this announcement has garnered important criticism from business pundits who query the need of a blockchain devoted to social media features. “What’s the worth proposition of a social-focused chain?” requested Dr. Jojipup of buying and selling platform AstraBit.

Amogh Gupta of the Sui Basis expressed issues concerning the transfer from the Base blockchain to a much less battle-tested and extra centralized infrastructure. In registering his disapproval, he recalled that  Conduit was the RaaS supplier for the Degen chain that beforehand went down for over 24 hours.

Siong, the co-founder of Jupiter Alternate, questioned the effectiveness of the narrative surrounding the launch of a brand new blockchain in an period the place creating one’s personal Layer 2 is so simple as a single click on.

Including to the vital voices, Mothu et Doria, an Architect at Kinode OS, sarcastically highlighted the potential for elevated utility and scalability {that a} new blockchain might deliver to Pal.tech’s platform amid current points with the app’s efficiency and options.

Moreover, commenters additionally raised issues concerning the potential for elevated gasoline charges on Friendchain, as Base is thought for being a low-cost Ethereum layer-2 answer.

Regardless of the blended reactions, the market reacted swiftly to the information. Pal’s value skilled a dramatic surge, hovering 64% to $1.31 post-announcement, solely to settle again to $0.89 inside the hour.