Once a promising decentralized social media platform, Phaver officially stopped operating after native token social fell by more than 99% since the Token Generation Event (TGE) in September 2024.
The sudden shutdown erased months of community involvement and developer momentum. Purposed to bridge the ecosystems of lenses and furcasters, Phaver once had 35,000 active users and over 800,000 downloads daily. At its peak, the app accounted for 50% of all lens traffic and 20% of farcaster traffic.
Defi analyst Ignas shared his views on the platform's collapse, citing a combination of strategic failure and financial dismantling.
“I learned yesterday that Farber is closing all social media,” Ignas added:
The launch of tokens for the platform was undermined by technical issues, including a multi-hour portal shutdown that prevented users from charging for tokens. The delays caused widespread FUD (fear, uncertainty, doubt), which undermined user trust from the start.
According to members of the Phaver team, the project spent over $1 million to secure a list of five centralized exchanges (CEXS) including Bybit, Kucoin and gate.io. Nevertheless, trading volume and liquidity failed to meet expectations.
The key decision by the Fever team to not sell tokens due to already high FUD during tokenization events caused a shortage of operational funds. “That was a mistake,” the former employee said. The decision added that the team did not have enough resources to continue operations.
Social prices have fallen 99% since their launch.
Faber raised $8 million at a valuation of about $80 million from major backers such as Polygon Ventures and Nomad Capital. However, financial loss rates and poor financial management have proven deadly. As a Finnish company, Faber was also legally required to pay employees for a required one- to two-month notice period following the announcement of the closure.
Social continues to trade in exchanges technically, but its value has fallen, shocking investors and users.
*This is not investment advice.
