The native token of web3 social media platform FriendTech, FRIEND, witnessed a significant drop in value to a low of $0.80 following its launch.
The native token of web3 social media platform FriendTech, FRIEND, witnessed a significant drop in value to a low of $0.80 following its launch. However, the token briefly traded at an astonishing price of $169. Currently, according to CoinMarketCap, the Friend token is being traded at $2.51, up 218% from its lows.
With nearly 18,000 holders and a circulating supply of around 14.5 million tokens, the Friend token faced substantial selling pressure, coinciding with reports from multiple users on X who were unable to claim the airdrop. Some speculated that the price drop could be attributed to liquidity issues.
Liquidity plays a vital role in determining market stability and the ability to handle significant buy and sell orders without dramatic price swings. In low liquidity environments, a few large orders can disproportionately impact market prices. While initially lacking liquidity, Friend token's current liquidity currently exceeds $4 million. Earlier today, the token commenced trading on Bunny Swap, accessible via the FriendTech app.
FriendTech recently conducted an airdrop of its native token alongside the introduction of version 2 of its platform. Version 2 features "Clubs," which are community spaces owned and operated by key holders. Transactions within these Clubs will be conducted using Friend tokens, with a 1.5% fee benefiting liquidity providers on the platform's decentralized exchange (DEX).
FriendTech emerged in August of the previous year on Coinbase's Ethereum Layer 2 blockchain Base, offering an exclusive networking service through an invite-only approach. The platform leverages social tokens known as "Keys" to grant users access to exclusive chats and content from creators.
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