Friend.Tech Faces Fallout After Massive FRIEND Token Dump

The post Friend.Tech Faces Fallout After Massive FRIEND Token Dump appeared first on Coinpedia Fintech News

Popular Web3 social platform, Friend.tech has recently been in a controversy after the platform’s largest airdrop recipient sold all his tokens just hours after the airdrop went live. 

The massive sell-off by a major whale, who goes by the name “Murphys1d,” has raised questions on whether or not he has influenced the token’s price action and the integrity of the airdrop process. Moreover, such an unexpected and abrupt dumping has coincided with reports of users struggling to claim their airdrop tokens.

Largest Whale Dumps Over 55,000 Friend.tech Tokens

According to reports from Blockchain data, a whale going by the name “Murphys1d,” secured the largest airdrop recipient of FRIEND tokens, but soon after the launch sold over 55,000 of the newly issued FRIEND tokens. 

While airdrops are aimed at gaining buyer’s patronage, this massive sell-off by “Murphys1d” caused a significant drop in FRIEND tokens, declining the prices by over 52.5%. FRIEND’s value dropped from $3.26 priced at the beginning of its launch, to $1.32, with a 32% drop within just an hour of the sell-off.

Airdrop Claiming Issues 

What led to more controversy and a heated market situation is that, while the whale secured the largest amount of FRIEND tokens, many users reported difficulties in claiming their airdrops. 

Crypto investor Luke Martin shared his frustration on X on May 3rd, stating, “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.” The impact of the whale’s massive sell-off was exacerbated more because other holders could not participate in the airdrop due to technical issues. 

Intergovernmental blockchain expert and author of “NFT: From Zero to Hero,” Anndy Lian, warns us about the impact of such behaviour on the market. He says, “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.” 

Lian explained that the sell-off could have reduced the risk of a single entity having excessive control over the project and instead led to a more decentralized distribution of tokens. 

Maybe Not Next Time?

The FRIEND whale, “Murphys1d” is a classic example of an airdrop farmer, a term used to refer to a person or group of people that interacts with protocols solely to benefit from airdrops and then sells the tokens for profit. Such actions create significant sell pressure, leading to panic selling by genuine users. 

In response to complaints from users, Friend.tech has assured that they will take action to address the rapid price decline issue. 

A recent post on X by user ‘Cbb0fe’ indicated that the platform might be considering non-transferable tokens for its V2 launch, which is likely to introduce new features like Clubs alongside a 1.5% platform fee. Launching non-transferable tokens might help prevent airdrop farmers from early token dumping and stabilize the token’s price.