Decentralized social media platform Friend.tech has renamed its token to “Keys” to better align with its purpose, according to an Aug. 21 statement.
Friend.tech, a decentralized app based on the Base Layer-2 network, said the original name, Shares, was a placeholder that needed to be changed to reflect its purpose better.
However, the name change is yet to reflect on-chain, with its contract code still showing “buyShares” and “sellShares.”
The decentralized social media applications enable users to transact keys (formerly shares) linked to their preferred personalities. These keys grant users access to private in-app chatrooms and exclusive content with the associated individual.
Since its Aug. 10 launch, over 100,000 people have been given access to the platform, with the protocol generating more than $1 million in fees on Aug. 21.
Community links name change to SEC
Several crypto community members speculate that Friend.tech’s recent actions aim to mitigate potential legal actions from the U.S. Securities and Exchange Commission (SEC).
DeFi trader 0xSisyphus populated the theory stating an alternate interpretation of Friend.tech’s statement;
“The original name was good but our legal team has advised us that maybe it’s not a good idea to use words associated with financial markets.”
Lawyer and Seedstarter founder, Jesse Hynes, pointed out that the platform likely did not get legal advice before choosing its previous placeholder name. Hynes said:
“Anyone who decided “shares” was a placeholder name either didn’t get legal advice or blatantly ignored legal advice.”
Meanwhile, several others argued that the name change might not stop the SEC from coming after the platform if it chooses to do so. According to them, the financial regulator currently targets “everything tradable with value” under its heightened scrutiny of the crypto industry.
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