Phaver Shuts Down Amid Token Collapse and Financial Struggles

Once a rising star in decentralized social media, Phaver has officially ceased operations following the collapse of its native token and mounting operational challenges.

Phaver, a decentralized social platform built on Web3 infrastructure, has announced the shutdown of its operations, marking the end of a project that was once seen as a frontrunner in the on-chain social media space. The closure follows a dramatic 99% collapse in the value of its native token, SOCIAL, since its Token Generation Event (TGE) in September 2024.

At its peak, Phaver achieved notable adoption, boasting over 800,000 downloads and around 35,000 daily active users. It served as a central gateway into the decentralized social graph, accounting for nearly 50% of all Lens Protocol activity and 20% of Farcaster’s traffic. But despite strong user metrics, Phaver’s foundations were already beginning to crack.

Token Troubles and Strategic Missteps

The project’s downward spiral began during its TGE, where users faced severe delays and technical issues while claiming their SOCIAL tokens. A malfunctioning claiming portal fueled widespread frustration and triggered waves of FUD (fear, uncertainty, and doubt) across the community. The situation undermined trust just as the project needed momentum the most.

In parallel, Phaver’s financial decisions worsened the crisis. The team spent over $1 million to list SOCIAL on five centralized exchanges—including Bybit, KuCoin, and Gate.io—but chose not to sell any tokens during the launch. While this was intended to project long-term confidence, it left the company without sufficient operational funds to support its growth or sustain day-to-day operations.

Legal Obligations and a Glimmer of What’s Next

As a Finnish company, Phaver was also legally required to pay its employees one to two months of severance, a regulation that added further strain to its already depleted reserves. With no path to recovery and no liquidity left, the team made the difficult decision to shut down operations.

In the wake of the shutdown, some former team members have regrouped to launch SocialDAO, an initiative aimed at finding new use cases for the SOCIAL token and potentially rebuilding community trust. While the future of SocialDAO remains uncertain, it represents an effort to salvage value from a project that once held so much promise.

Phaver’s rise and fall is a sobering reminder for Web3 founders: even with impressive traction and community enthusiasm, execution and financial sustainability are critical. The collapse of SOCIAL and the platform’s ultimate shutdown reflect the unforgiving nature of crypto markets—and the need for resilience behind every ambitious roadmap.