The social application Phaver has ceased operations due to serious technical and financial problems. The project’s token has dropped by 99% since the token generation event (TGE) that took place in September 2024.
This is reported by Finway
A cryptocurrency analyst under the pseudonym Ignas reported that the Phaver team faced financial difficulties, as well as a wave of FUD (fear, uncertainty, and doubt). According to him, Phaver had the potential to bridge the ecosystems of Lens and Farcaster; however, despite having 35,000 daily active users and 800,000 downloads, the project was unable to overcome its challenges.
Reasons for Phaver’s Closure
The project, launched in May 2022, was positioned as a bridge between Web2 and Web3. Ignas stated that a successful funding round of $7 million in October 2023 attracted significant investors, such as Polygon Ventures and Nomad Capital. However, fundamental issues led to its closure.
“The project closed due to three main reasons: errors during the TGE, overpayment for listing, and the team’s refusal to sell their tokens,” said Ignas.
After the TGE, where only 18% of the 10 billion SOCIAL tokens were allocated to the team and key participants, difficulties arose that impacted the project’s stability. The team spent over $1 million on listing the token on five centralized exchanges, but this also did not yield positive results.
Outlook and Consequences
Ignas noted that this is a typical case in the crypto sphere, and some former team members continue to work on the project SocialDAO.ai to restore the utility of the SOCIAL token. It is noted that the token’s price has collapsed by nearly 99%, indicating serious problems in the industry.
Additionally, it was previously reported that the total value locked (TVL) in the DeFi sector has decreased by 30% since December 2024, highlighting the market’s instability.