Friend.tech token price plummeted more than 99% after airdrop
Friend.tech token price plummeted more than 99% after airdrop
According to data from DexScreener, SocialFi platform friend.tech's native FRIEND token has plummeted from its short-term launch peak of $169 to around $1.60, marking a drop of more than 99%.
At one point, FRIEND "dropped" seriously to its lowest level around 0.75 USD, but quickly recovered to trade above the 1.2 USD mark.
Most of the investor community predicts that the cause of the "plunge" of the FRIEND token is mainly due to the sell-off by a large number of users after receiving the project's airdrop at noon on May 3, 2024.
However, some users responded on I reduced from 7 figures to 5 figures".
Others speculate that the FRIEND sell-off may be due to liquidity issues - when liquidity is low, large trading orders can create an imbalance in the market price of a token.
Crypto trader mcSleuth angrily shared:
"This is definitely a joke by friend.tech, the project only injects liquidity of 0.01 USD, so they have to squeeze users' pockets with transaction fees, then lure people to provide liquidity Letting investors 'dump' tokens on each other is truly a top strategy of the friend.tech team."
In fact, at the time of the airdrop, the FRIEND token was opened for trading on the BunnySwap DEX, but could only be accessed via the project's application. Liquidity at that time was recorded at only approximately 2 million USD, while FRIEND's capitalization value was nearly 47 million USD.
However, after a period of trading, FRIEND's current liquidity has reached more than 5 million USD. On-chain data from basescan shows there are currently over 20,000 holders and a total circulating supply of around 14.5 million.
friend.tech also clearly states that FRIEND transactions will charge a 1.5% fee, and fee revenue will be returned to farmers and token holders.
The second new feature is the ETH/FRIEND liquidity pool. Users who add liquidity (LP) to the pool will receive rewards from 1.5% of the pool's swap fees, 1.5% of trading fee revenue as stated above, and token rewards.
So it can be seen that version V2 updates features all revolving around the use of the FRIEND token, increasing the value of the token.
Some KOLs also started sharing screens showing that the previous bonus points have been converted into FRIEND tokens, with a ratio of 1 FRIEND = 10 points.
Users of this social network are rushing to claim the airdrop to "take advantage" of the release, making the application overloaded and inaccessible, or if accessible, they can claim it but cannot sell it because it is too laggy.
Someone pointed out that in order to quickly sell FRIEND, users need to add liquidity in the "Farm Rewards" section and then exchange FRIEND for ETH.
friend.tech at the time of writing has not yet made an official announcement about the FRIEND token deployment event, as well as the project's tokenomics.
Although it has not been officially confirmed, according to sources, 100% of friend.tech's token supply will be distributed to users, meaning there is no "interference" in the price of investment funds, coinciding with with information given by friend.tech on March 22.
This number can be said to be "huge" compared to the number of tokens for a standard airdrop. For example, Wormhole (W) TGE with 18% of total supply, Ethena's ENA is 9.5%, or the latest is Kamino (KMNO) only stopping at 7.5%.
friend.tech is a prominent project in the SocialFi segment, launched in August 2023 and has created a "boom" with the idea of opening and selling tokens (called keys), linked to the X account (old Twitter). ) of users with ETH on layer-2 Base of Coinbase. In essence, the key is an ERC token, but the information is stored offline and the price fluctuates based on market demand.
The idea of friend.tech focuses on the connection between influencers (KOLs) and ordinary users. To have the opportunity to chat with a KOL, users are required to purchase that KOL's key and own a number of benefits including:
10% of the key purchase transaction fee will be divided equally between the chat room owner and friend.tech.
Users will receive reward points for interactive activities on this SocialFi application, thereby having the opportunity to airdrop project tokens.
Under the pressure of applications positioning themselves as friends.tech's competitors on other chains (such as Stars Arena on Avalanche, PostTech on Arbitrum, Tomo on Linea), the SocialFi project that caused a storm on Base still has the upper hand. in terms of total value locked (TVL) in the overall SocialFi segment.
Data from DefiLlama clearly shows that the TVL of the entire SocialFi segment is currently 33.93 million USD, of which more than 90% comes from friend.tech at 30.51 million USD, with 5,120 active users in 24 hours
