Friend.tech

The largest airdrop recipient on Friend.tech has sold all their tokens just hours after the airdrop, leading to concerns over the token’s price action.
Just hours after the Friend.tech airdrop went live on May 3, the largest whale, known as “Murphys1d,” sold over 55,000 of the newly-issued Friend tokens, blockchain <a href="https://basescan.org/address/0xA0A0406D9564948fDe6A04f5A028262d3c2F4FD9#tokentxns" target="_blank" rel="noopener nofollow">data</a> shows.
Beyond the sell-off, some users were unable to claim their airdrop tokens, including crypto investor Luke Martin, who wrote in a May 3 X <a href="https://twitter.com/VentureCoinist/status/1786297593863025115" target="_blank" rel="noopener nofollow">post</a>:
<blockquote data-ct-non-breakable="true">
 “Watching the value of my airdrop go from 7 figures to 5 figures in the span of 2 hours while I keep refreshing the page trying to claim....still can’t claim. Adds insult to injury.”
</blockquote>
Martin added that the whale wallet seems to be linked to a fake X account with no activity, enabling it to farm over 500,000 Friend.tech points risk-free.
The new Friend.tech (FRIEND) token has fallen over 52.5% since its launch, from $3.26 to just $1.32 as of 9:50 am UTC. The token’s price fell over 32% in the last hour before publication, <a href="https://www.coingecko.com/en/coins/friend-tech" target="_blank" rel="noopener nofollow">according</a> to CoinGecko data.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-05/1e1ba247-0bd8-4848-b424-9a418374ba48.png" alt="" title="">
 <figcaption style="text-align: center;">
 FRIEND/USDT chart. Source: CoinGecko
 </figcaption>
</figure>
While the selling by the largest Friend.tech whale may impact the market in the short term, it doesn’t necessarily dictate a token’s long-term trajectory, according to Anndy Lian, intergovernmental blockchain expert and author of NFT: From Zero to Hero. Lian told Cointelegraph:
<blockquote data-ct-non-breakable="true">
 “While it might cause a short-term dip in price due to increased supply and potential panic selling, it doesn’t always mean a long-term downtrend. To me, it is a good thing […] The sell-off would mean a more decentralized distribution of tokens. A broader distribution reduces the risk of a single entity having excessive control over the project.”
</blockquote>
However, Lian noted that the token’s value will mainly rely on the community’s trust in Friend.tech and how the team manages the current situation.
Related: <a href="https://cointelegraph.com/news/layerzero-takes-airdrop-snapshot">LayerZero cross-chain interoperability protocol completes first airdrop snapshot</a>
<h2 data-ct-non-breakable="true" id="airdrop-farmers-continue-to-plague-token-launches">Airdrop farmers continue to plague token launches</h2>
The mysterious Friend.tech whale is another example of a professional airdrop farmer (squatter) who interacts with emerging protocols solely for the airdrop rewards, often with multiple wallets to compound rewards.
The main issue with airdrop farmers is that they tend to market sell all their airdropped tokens, creating significant sell pressure and resulting in more panic selling by legitimate protocol users.
An example of this came at the end of April, when the Omni Network’s <a href="https://cointelegraph.com/news/omni-token-dumps-after-airdrop-as-scammers-rug-fake-token">OMNI token fell 55%</a> in less than 18 hours following its airdrop, losing over half its market capitalization.
In March 2023, it was revealed that airdrop hunters <a href="https://cointelegraph.com/news/arbitrum-airdrop-sees-1-500-addresses-consolidate-3-3m-into-two-wallets">consolidated $3.3 million worth of tokens</a> from Arbitrum’s ARB airdrop from 1,496 wallets into just two wallets they had controlled.
Related: <a href="https://cointelegraph.com/news/mr-100-buys-bitcoin-dip-first-halving-btc-bottom">‘Mr. 100’ buys the Bitcoin dip for the first time since halving — Is the BTC bottom in?</a>

Biggest Friend.tech whale dumps tokens as users struggle to claim airdrop

Table of Contents

Cointelegraph

Other articles published on May 3, 2024

Nigeria has instructed entities to identify individuals engaging in cryptocurrency transactions t...

Kraken’s CF Benchmark Projects $1B AUM in Hong Kong ETFs by 2024 as Per Bloomberg’s Report

Worldcoin expands in Mexico as Argentina ramps up data privacy regulations

Terra Money CEO Withdrews Victims Fund of $3.6M as Salary

Did Michael Saylor Just Label ETH, XRP and ADA Crypto Securities?

Here's What $100 In Dogecoin Would Be Worth If You Invested 10 Years Ago

Join our free newsletter for daily crypto updates!