BASE
by BSC News
August 22, 2023
The move comes in response to concerns about potential securities regulations from the SEC, aiming to avoid scrutiny.
Summary
In a recent move, decentralized social media platform Friend.tech, on Monday, changed the name of its core asset from "Shares" to "Keys." The platform's rapid ascent in popularity, attracting celebrities and users alike, has sparked debates about its legitimacy, with some labeling it a potential Ponzi scheme.
“We've renamed Shares to 𝗞𝗲𝘆𝘀. The original name was a placeholder during development and we think Keys better illustrates their purpose as in-app items used to unlock your friends' chatrooms”, said Friend.tech on X (formerly Twitter).
The decision to rename “Shares” to “Keys” comes in response to the platform's intention to avoid scrutiny from the SEC over potential securities regulations. While the new moniker aims to align more closely with the tokens' purpose - as tools for unlocking private chatrooms - it remains uncertain whether this move will entirely shield Friend.tech from securities regulations
The move comes shortly after Friend.tech's launch on Coinbase’s Ethereum scaling network Base. On the platform, users can buy and sell “shares” —now “keys” tied to their favorite Twitter accounts, providing them access to private in-app chatrooms with the user.
Each transaction within Friend.tech incurs two 5% fees, with one contributing to the platform's treasury while the other goes to the account holder whose shares are being traded. Investors can also capitalize on potentially increasing "key" values tied to specific accounts.
The rebranding signifies the platform's proactive measures to adapt to evolving regulatory pressures and maintain its standing within the dynamic crypto landscape.
Disclaimer
Disclaimer: The views expressed in this article do not necessarily represent the views of BSCNews. The information provided in this article is for educational and informational purposes only and should not be construed as investment advice. BSCNews assumes no responsibility for any investment decisions made based on the information provided in this article
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