Ethereum

LayerZero

Read

Friend.tech

<p class="is-style-lead">Users decried the friend.tech airdrop claims process as the token tumbled from a sharp spike as high as $167 and crashed from its opening price of $10.&nbsp;</p> 
<p>SocialFi project friend.tech debuted its native token FRIEND on May 3 with an airdrop to users, along with version 2 of its protocol previously announced last month.&nbsp;The platform launched last year on Base, Coinbase’s Ethereum (<a href="https://crypto.news/price/ethereum/" target="_blank" rel="">ETH</a>) L2 network, offering an invite-based community through “keys”, a custom ERC-20 social token type.&nbsp;</p> 
<p>Shortly after FRIEND launched, <a href="https://dexscreener.com/base/0x7cfc830448484cdf830625373820241e61ef4acf" target="_blank" rel="">DEX Screener</a> data showed a 98% plunge in the token’s price and little liquidity. Token liquidity allows traders to buy or sell assets on the market, essentially enabling trading. Small liquidity caps can result in massive price swings since large orders will have a greater impact. </p> 
<p>A Messari analyst <a href="https://twitter.com/AvgJoesCrypto/status/1786408349073887637" target="_blank" rel="">noted</a> that friend.tech’s team initially added a liquidity level far disproportionate to the amounts collected in fees.&nbsp;</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">“It’s free money bro why is CT upset”<br><br>Um, it wasn’t? Users paid $60 million in fees, and $30 million(!!!) of that was extracted by Friendtech. <br><br>So collectively, users paid $30m in farming costs for a token that has a liquidity pool of only $3m ETH liquidity… <a href="https://t.co/aCrpmVUaNQ" target="_blank" rel="">pic.twitter.com/aCrpmVUaNQ</a></p>— Average Joe’s Crypto (@AvgJoesCrypto) <a href="https://twitter.com/AvgJoesCrypto/status/1786408349073887637?ref_src=twsrc%5Etfw" target="_blank" rel="">May 3, 2024</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
<p> You might also like: <a href="https://crypto.news/friend-tech-moved-almost-50-of-its-fees-to-coinbase-as-tvl-slashed-by-half/" rel=""> Friend.tech moved almost 50% of its fees to Coinbase as TVL slashed by half </a> </p> 
<p>Users also <a href="https://x.com/VentureCoinist/status/1786297593863025115" target="_blank" rel="">pointed</a> out that the claim portal was clunky, resulting in successful claimants selling large chunks of the token and driving prices down while others could not collect the airdrop.</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">Watching the value of my airdrop go from 7 figs to 5 figs in the span of 2hrs while I keep refreshing the page trying to claim….still can't claim. <br><br>Meanwhile I gotta watch this guy cashout while my wallet won't even load.<br><br>Adds insult to injury 💀💀💀</p>— Luke Martin (@VentureCoinist) <a href="https://twitter.com/VentureCoinist/status/1786297593863025115?ref_src=twsrc%5Etfw" target="_blank" rel="">May 3, 2024</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
<p>FRIEND declined from $10 to under $2, but liquidity had improved. At press time, crypto.news noted over $8.3 million in liquidity while FRIEND’S 14.5 million supply supply held a $67 million market cap. The token also had over 20,000 holders and counting.&nbsp;</p> 
<figure class="wp-block-image size-large">
 <picture loading="lazy" decoding="async" class="wp-image-14270282"> 
  <source type="image/webp" srcset="https://crypto.news/app/uploads/2024/05/Screenshot-441-1024x477.png.webp"> 
  <img loading="lazy" decoding="async" width="1024" height="477" src="https://crypto.news/app/uploads/2024/05/Screenshot-441-1024x477.png" alt="friend.tech"> 
 </picture> 
 <figcaption class="wp-element-caption">
  FRIEND token data after airdrop | Source: DEX Screener
 </figcaption>
</figure> 
<p>While liquidity improved and the number of holders increased, sellers still outmatched buyers by over 2,000. Coinbase Director Conor Grogan remarked that the <a href="https://crypto.news/friend-tech-rolls-out-2fa-feature-amid-surge-in-sim-swap-attacks/" target="_blank" rel="">friend.tech</a> token launch presented a case study on airdrop culture, and how market participants react following distribution. </p> 
<blockquote class="wp-block-quote"> 
 <p>“The FriendTech airdrop is interesting because we get onchain proof of everyone’s trading acumen in an identity-linked way in about as good a natural experiment as you will ever get.”</p> <cite>Conor Grogan, Coinbase Director</cite>
</blockquote> 
<p> Read more: <a href="https://crypto.news/layerzero-confirms-snapshot-for-possible-airdrop/" rel=""> LayerZero confirms snapshot for possible airdrop </a> </p>

Friend.Tech’s token falls 98% following airdrop fiasco

crypto.news

Další články publikované 3. 5. 2024

Compared to Estimates, Riot Platforms, Inc. Q1 Earnings: A Look at Key Metrics

Exploring the Strategic Investment in Dogwifhat (DWH) by Top Hedge Fund: The Power of a Penny Pur...

Bitcoin price prediction – Should you buy and is $100K still on the cards?

Jack Dorsey Doubles Down on Bitcoin: Block Announces DCA Plan

How Will Bitcoin’s Current Trends Impact Its Future?

Friend.Tech Launches Version 2 With Native Token Airdrop, But Not Everything Goes According To Pl...

Join our free newsletter for daily crypto updates!