Friend.Tech’s FRIEND Token Rollercoaster: From $169 to $2.5 in Hours
Friend.Tech, a decentralized social platform built on Coinbase’s Ethereum-based layer-2 blockchain Base, launched version 2 of its platform on Friday, May 3, 2024, alongside the airdrop of its native token, FRIEND.
The platform, which initially debuted in August 2023 as an invite-only service with a reward point system, has now introduced new features such as the Money Club and an updated point system.
TLDR
Friend.Tech airdropped its native token, FRIEND, while launching version 2 of the platform on Friday, May 3, 2024.
The token’s price surged to $169 but quickly plummeted to $2.5, potentially due to liquidity issues and a concentrated airdrop favoring leading creators.
Version 2 introduces new features such as the Money Club and a point system, with crypto assets worth $29.8 million locked in Friend.Tech.
Some users reported issues with claiming their airdrop, and the distribution was seen as favoring leading creators over retail investors.
A leaked smart contract reveals plans to launch non-transferable v2 tokens called POINTS, which may help preserve the token’s market price after launch by imposing a 1.5% fee on transfers.
The FRIEND token experienced significant volatility upon its launch, with prices surging to $169 before quickly falling to $2.5.
Experts suggest that the price dump may have been driven by liquidity issues, similar to the case of Renzo the previous week. The concentrated airdrop, which allegedly favored leading creators over retail investors, may have also contributed to the price volatility.
Despite the rocky start, Friend.Tech has gained prominence in the Web3 space, with crypto assets worth $29.8 million locked in the platform, although this figure is more than 40% off the peak of $52.04 million in early October.
The launch of version 2 and the anticipation surrounding the FRIEND token airdrop led to increased activity on the platform in the weeks leading up to the launch.
Several users reported problems with claiming their airdrop, leading to frustration among the community. Some analysts also criticized the distribution of the airdrop, claiming that it disproportionately benefited leading creators while leaving retail investors with significantly less than expected. Friend.Tech has not yet responded to requests for clarification on these issues.
Looking ahead, a leaked smart contract reveals that Friend.Tech may be planning to introduce non-transferable v2 tokens called POINTS. This move, which follows in the footsteps of EigenLayer’s non-transferable EGEN token, is seen as an attempt to preserve the market price of the token after launch.
By imposing a 1.5% fee on transfers, Friend.Tech aims to discourage early sales and exchanges of the tokens, except to certain whitelisted addresses.
As Friend.Tech continues to navigate the challenges of launching a native token and introducing new features, the platform remains a significant player in the Web3 social media space.
With a focus on community-driven content and exclusive access through social tokens, Friend.Tech is well-positioned to capitalize on the growing interest in decentralized social networking.
