FRIEND Token Plummets with Friend.Tech's Crypto Airdrop Launch! 😱📉

Friend.Tech Launches Airdrop, Witness a Drop in FRIEND Token Value

Friend.Tech, a decentralized social media platform, has recently rolled out its much-anticipated crypto airdrop. Following this release, the platform saw a sharp decline in the value of its native token, FRIEND, coinciding with the launch of Friend.Tech V2.

Impacts of Friend.Tech Airdrop and Token Drop

On May 3, Friend.Tech distributed its native token, FRIEND, alongside the unveiling of the platform’s latest version, Friend.Tech V2, which featured new elements like the Money Club.
After the token began trading on Base, its price spiked to $169 but swiftly plummeted to $3.26, indicating a significant decrease.
The primary recipient of the crypto airdrop on Friend.Tech swiftly sold off all received tokens, leading to concerns about the token’s market value and contributing to a subsequent drop of 52.5% in the FRIEND token’s price.

Introducing Liquidity Challenges

The fluctuating price movements of the FRIEND token can be traced back to liquidity issues. Liquidity refers to a market’s ability to accommodate large transactions without causing substantial price fluctuations. In markets characterized by low liquidity, a small number of significant transactions can disproportionately impact market prices.

“This has to be a joke, Friend.Tech only added $0.01 in liquidity. So first you milk your users with fees, then you get them to add liquidity so that they can dump on each other. Top class team here,” expressed a member of the crypto community.

Friend.Tech and Its Position in the Crypto Space

Despite facing criticism, Friend.Tech stands as the ninth-largest protocol on the Base network, boasting a total locked value (TVL) of around $28 million.
The inclusion of the Money Club in V2 aims to rekindle interest, allowing communities to manage joint treasuries and introducing customizable engagement metrics in chats for improved user interaction.
These enhancements not only seek to boost platform usage but also position Friend.Tech to reclaim its competitive advantage in the realm of decentralized social networks.