Social Media Platform Phaver Stops Operations Following a 99% Drop in $SOCIAL Token Value
Phaver's Swan Song: A Tale of Missteps and Misfortune
In a stark turn of events, the ambitious Web3 social media app, Phaver, has decided to pull the plug. The native SOCIAL token, initially promising with its launch in September 2024, has plummeted an astounding 99%, casting a long shadow over Phaver's ambitious vision.
Born out of the unification of Lens Protocol and Farcaster, Phaver promised to revolutionize decentralized social networking. However, a series of missteps and poor decisions left the platform gasping for breath.
Technical nightmares and monetary mistakes
The tangled web started at the Token Generation Event (TGE). Users battled long waiting times for their tokens due to technical snags in the portal. This fuelled anxiety and shook user trust, dealing a heavy blow to Phaver's reputation.
Facing the challenge of visibility head-on, Phaver shelled out over $1 million to list the SOCIAL token on five centralized exchanges like Bybit, KuCoin, and Gate. However, these costly listings brought little respite, as the expected liquidity and sustained trading activity failed to materialize.
Another debilitating decision came when the team opted not to sell tokens during the TGE. Concerned about the market's growing unease, they kept the tokens close. But this meant they were short on funds when they needed them the most, exacerbating their financial woes.
As a Finnish company, Phaver was legally obligated to pay employees during the notice period. This added another layer of financial pressure, plunging the company deeper into crisis.
Disappointed Investors, Bleak Future
Phaver had once garnered the attention of major investors like Polygon Ventures and Nomad Capital, who together backed the app with $8 million. However, the platform's demise has left the community and investors disheartened. The hopes of reshaping the decentralized social networking landscape appeared to have collapsed along with Phaver.
Dawn of a New Era: SocialDAO
In the shadows of Phaver's collapse, a silver lining shines—some of the former team members have embraced the challenge of reviving the SOCIAL token. They've set their sights on SocialDAO, a new project aspiring to create fresh use cases for the SOCIAL token. Armed with AI and decentralized finance, SocialDAO seeks to reignite the spark behind the token and open new avenues for growth.
References:- [1]: https://www.phaver.io- [2]: https://socialdao.io- [3]: https://coingecko.com/en/coins/phaver-social
The decision to halt operations, despite the initial promise of the SOCIAL token on Phaver, was a consequence of the cryptocurrency's devastating 99% plunge. The token generation event (TGE) was marred by technical glitches, causing long waiting times for users and eroding user trust. In an attempt to boost visibility, Phaver spent over $1 million to list the SOCIAL token on centralized exchanges like Bybit, KuCoin, and Gate, but it yielded little success. The team's choice not to sell tokens during the TGE left them financially strapped at a critical juncture, compounding their monetary problems. The unfortunate closure has left investors disheartened, as the vision of reshaping the decentralized social networking landscape now seems bleak. Yet, a glimmer of hope emerges in the form of SocialDAO, a project spearheaded by former Phaver team members who aim to breathe new life into the SOCIAL token by leveraging AI and decentralized finance, aiming to rekindle the token's potential for growth.
