The Friendsies NFT founders are speaking out against allegations that they have pulled the rug on the project. After announcing a pause of the project, holders are calling Friendsies a rug pull as they failed to deliver on promises made. But what’s actually going on?
Controversy Surrounds Friendsies NFT Collection
The founders of the NFT collection Friendsies have denied allegations of abandoning the project. A large number of holders are accusing them of a rug pull due to their recent project announcements. Significantly, Friendsies informed their Twitter followers that they were placing a “pause” on the project and “all future digital goods.” Apparently, this is due to current challenges in the market. Adding to holder concerns, the Friendsies Twitter account was deleted. Rumors began to circulate that the founders had rugged for approximately $5 million. Subsequently, they made the account of Friendswithyou, the project’s founder, private.
Meanwhile, the founders of the Friendsies NFT collection have strongly denied claims of abandoning the project. The project have also reinstated their Twitter account. However, the founders’ account is still private. They acknowledged that their initial announcement has upset many people and admitted that they could have handled it better. The founders also clarified that they are not abandoning the project. They said the announcement was more about pausing social engagement for now. Furthermore, they stated that their efforts to build and seek opportunities for the project are ongoing. Despite this, some members of the community are now proposing a plan to take over and continue running the project.
In their initial announcement, Friendsies stated that the market’s volatility and challenges had made it impossible to move the project forward in a way they were happy with. In a Twitter thread posted 17 hours after the pause announcement, the project’s founders said that the hate and threats they received as a result of the announcement was overwhelming. The founders expressed regret if they had let their followers down with their communication but continued to emphasize that they were not abandoning the project.
What’s Next for Friendsies NFT?
Friendsies is a 10,000 NFT collection on the Ethereum blockchain. The creators launched the project last April using a Dutch auction mint, which began at 3.33 ETH. This was around $11,450 at the time. The mint eventually generated a huge $5.3 million worth of funds. It’s unclear if these funds were ever utilized, and if so, how they were utilized.
The unique Friendsies avatars, which showcased a vibrant, cartoonish style, acted as an access pass into a community. It was supposed to work as a “digital companion” that could be used in the metaverse, real-life experiences, and art installations. Founders also promised NFT holders a Tamagotchi-style play-to-earn game. In addition, the creators promised that NFT holders would receive a portion of the project’s creator royalties from sales on the secondary market. So far, they have generated about $15 million worth of trading volume to date. However, the founders did not fulfil these promises.
The recent moves made by Friendsies has left NFT holders feeling uneasy, and understandably so. Satvik Sethi, the former NFT product lead for Mastercard, tweeted an offer to help the community take over the project and keep it alive. Other Web3 founders, creators, and collectors have volunteered to assist Sethi with a new vision for Friendsies. Now, concerned Friendsies NFT holders are discussing potential paths forward amongst themselves, including ways to support community members and investors, or even pursue potential legal action over as-yet-unrealized promises.
Sethi, like many others on Crypto Twitter, described the Friendsies NFT founders apparent move as a “rug” or “rug pull,” meaning the creators bailed on the project after making significant promises, leaving paying supporters high and dry.
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