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Friendsies NFT Collection Deletes Twitter After ‘Pause’ Announcement Spurs Rug Pull Accusations

Friendsies NFT Collection Deletes Twitter After 'Pause' Announcement Spurs Rug Pull Accusations

Friendsies, a non-fungible token (NFT) collection,  is in trouble after taking a “pause” and deleting its Twitter account, prompting charges that the project is no longer active. In 2022, the initial distribution of NFTs yielded around $5 million.

The creators of a popular collection of funny avatars announced on Twitter Monday night that they will discontinue development of the collection, citing market constraints as the cause.

“We had the best intentions to make a true digital companion for the future,” Friendsies tweeted. “However the volatility and challenges of the market have made it very difficult to move this project forward in a way we can be proud of.”

We could see on Friendsie website that the project set aim to mint 10,000 Friendsies, collaborating with Christie’s in March 2022 to sell nine early-access mint permits to the collection on secondary marketplace OpenSea, allowing enthusiastic collectors to mint the rarest Friendsies.

Those who responded to the collection’s post had their accounts limited immediately afterwards, and Friendsies deleted their Twitter account shortly after. Twitter users also blamed Farokh, the host of the Web3 show Rug Radio, and Jen Stark, a generative artist who promoted the collection on Twitter early on.

OpenSea data shows that the collection’s current floor price is 0.011 ETH, or about $18, with a trading volume of 3,774 ETH, or about $6.3 million. The Netherlands auction began with a starting price of 3.33 ETH, or nearly $12,000 per token at the moment, when the collection’s minting began.

Friendsies was created from the start to offer holders with access to a play-to-earn game. It also proposed a community fund and a future strategy for expanding the brand’s intellectual property, neither of which came to fruition.

Friendsies ‘Rug Pull’ NFT Holders the Community Take Over

Friendsies 'Rug Pull' NFT Holders the Community Take Over

Several people in the community come up with a plan to take over the project and keep running it.

Satvik Sethi, who used to be the head of Mastercard’s NFT product and is now the CEO of Web3 social app company Joincircle, tweeted today at @FriendsWithYou an offer to help the community take over the project from its original developers and keep it going. Several Web3 founders, creators, and collectors have replied by offering Sethi their help in putting a new plan for Friendsies into action.

In a series of tweets, he asked FriendsWithYou to “do the right thing” and “don’t abandon those who put their trust in you.” He also said that he would put together a new team and move the project forward from a different point of view.

Sethi wants to make a formal offer to the artists to find a way forward for a project that is currently uncertain for NFT holders and fans. He told Decrypt that he doesn’t know if the artists would consider such a plan and give him and others permission to keep working on the project using intellectual property from FriendsWithYou.

Because Ethereum NFTs are composable assets, other developers could make apps and experiences that work with the Friendsies NFTs, but they probably couldn’t use the artists’ intellectual property without their permission. Sethi thinks that there is enough support from fans and holders to bring the project back to life and give it a new start.

Before today’s news, Sethi pointed out that the project’s founders hadn’t said anything in the official Discord server since September, and it was clear that they hadn’t kept most of the promises they made.

After hearing the news, he said that the project’s founders no longer use the Discord channel. Instead, people who own NFTs are thinking about what they could do next, like how to help community members or how to go to court over unfulfilled obligations.

In April, Friendsies were made through a Dutch auction mint that started at 3.33 ETH, which was about $11,450 at the time. ZachXBT, an on-chain detective, says that the price of the 10,000 NFTs slowly went down while they were being made, but the mint still made $5.33 million in ETH in the end. It’s not clear if the money was used and, if so, how.

Content Source: coindesk.com

Cover Image Source: lifestyleasia.com

About MahKa

MahKa loves exploring the decentralized world. She writes about NFTs, the metaverse, Web3 and similar topics.

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