Cipher

Arbitrum

ZachXBT

Read

<div class="cryptonews">
 <p class="is-style-lead">An Arbitrum-based Friend.tech clone has decided to slam the brakes ahead of its promised airdrop due to unsustainable operational costs, leaving users befuddled while noting the team’s healthy multisig wallet.&nbsp;</p>
 <p>Pseudonymous Cipher Fan creator, Zatis, announced the projects shut down on Oct. 24 just hours before its CIPHER token airdrop was set to launch as a reward to active users. The would-be socialfi contender debuted roughly two weeks earlier.</p>
 <p>Zatis said the Cipher Fan’s business model is non-profitable and the app is rife with bot activity rather than real users.&nbsp; Notably, the project’s social media accounts have been silent since Oct. 19.&nbsp;</p>
 <figure class="wp-block-image size-large"><picture decoding="async" class="wp-image-14207875">
   <source type="image/webp" srcset="https://cdn.thebittimes.com/images/2023/10/24/73f78ff099958757080d4c239dbb2e59.webp.webp">
   <img decoding="async" width="1024" height="269" src="https://cdn.thebittimes.com/images/2023/10/24/73f78ff099958757080d4c239dbb2e59.webp" alt="FT fork halts citing 'high costs', users note $336K in teams' multisig - 1"> 
  </picture>
  <figcaption class="wp-element-caption">
   Cipher Fan creator Zatis announces shutdown | Source: ZachXBT
  </figcaption>
 </figure>
 <p>Adam Cochran, a crypto commentator and avid Cipher Fan supporter disclosed personal losses incurred from his interaction with the project. Cochran echoed Zatis’ cost remarks but expressed confusion since the team recently inked an investment agreement.</p>
 <figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
  <div class="wp-block-embed__wrapper">
   <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
    <p lang="en" dir="ltr">So this morning Cipher had made the decision to shut down – which obviously I didn't expect.<br><br>While the team had high <a rel="noopener noreferrer nofollow" title="costs" href="https://thebittimes.com/tag/costs.html">costs</a>, they still had runway; and having only finalized an investment agreement the other day I don't think this was the right outcome for the team.<br><br>This morning…</p>— Adam Cochran (adamscochran.eth) (@adamscochran) October 24, 2023
   </blockquote>
  </div>
 </figure>
 <p>Fearing a ‘rug pull’, the colloquial term for a protocol’s abrupt halt, <a rel="noopener noreferrer nofollow" title="users" href="https://thebittimes.com/tag/users.html">users</a> refuted claims of high maintenance <a rel="noopener noreferrer nofollow" title="costs" href="https://thebittimes.com/tag/costs.html">costs</a> as one of Cipher Fans’ <a rel="noopener noreferrer nofollow" title="multisig" href="https://thebittimes.com/tag/multisig.html">multisig</a> wallets held some 183 ETH worth over $330,000 at current prices.</p>
 <p>On-chain sleuth ZachXBT confirmed the team’s wallet.&nbsp;This <a rel="noopener noreferrer nofollow" title="multisig" href="https://thebittimes.com/tag/multisig.html">multisig</a> collected fees from transactions and activities done on the blockchain-based social network.</p>
 <p>crypto.news reached out for comments and has yet to receive feedback at press time.</p>
 <figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
  <div class="wp-block-embed__wrapper">
   <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
    <p lang="en" dir="ltr">Their multisig for fees has $336k https://t.co/Y0rFupphbt</p>— ZachXBT (@zachxbt) October 24, 2023
   </blockquote>
  </div>
 </figure>
 <div class="cn-block-related-link">
  <svg class="cn-block-related-link__icon icon" aria-hidden="true"><use xlink:href="#"></use>
  </svg> <span class="cn-block-related-link__prefix"> You might also like: </span> Post.Tech generates $3m in daily volume on L2 Arbitrum
 </div>
 <p>Cipher Fan ranks among a handful of Friend.Tech forks to appear since the viral socialfi app launched in August, quickly generating millions in fees and total value locked. FT, as it is commonly known, allows users to buy keys that serve as access cards to private chat rooms.</p>
 <p>Stars Arena, a supposed FT rival on Avalanche, was hacked for $3 million but later recovered 90 percent of the fund. The attacker reportedly received a 10 percent bounty for the reimbursement.&nbsp;</p>
 <div class="cn-block-related-link">
  <svg class="cn-block-related-link__icon icon" aria-hidden="true"><use xlink:href="#"></use>
  </svg> <span class="cn-block-related-link__prefix"> Read more: </span> Friend.Tech collaborators booted from chatrooms
 </div> <span class="google-news-banner__label">Follow Us on Google News</span>
</div>
<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/ft-fork-halts-citing-high-costs-users-note-336k-in-teams-multisig-tbt67597.html">https://thebittimes.com/ft-fork-halts-citing-high-costs-users-note-336k-in-teams-multisig-tbt67597.html</a></p>

FT fork halts citing ‘high costs’, users note $336K in teams’ multisig

TheBitTimes

Other articles published on Oct 24, 2023

Floki Coin Partners with World Table Tennis (WTT) for Global Marketing

Rug pull feared as Safereum devs reportedly unlock and dump native token

Bitcoin ready for new rally as 80% of supply is in profit

Norman Rockwell Museum Launches its First NFT Collection

Paradigm Co-Founder Steps Down Ahead of the New Fund Launch!

Telos and LayerZero announce strategic partnership

Join our free newsletter for daily crypto updates!