Friend.Tech’s Native Token Tanks to $2.5 After Debut

As a seasoned crypto investor with several years of experience under my belt, I have seen my fair share of market volatility and token price dumps. However, the recent price crash of Friend.Tech’s native token FRIEND after its airdrop left me feeling particularly disappointed.

On Friday, the decentralized social platform Friend.Tech distributed its native token, FRIEND, as an airdrop to its community, coinciding with the launch of version 2. This new iteration brings a wealth of fresh features, among which is the introduction of the Money Club.

After starting trading on Base, the token’s value soared up to $169 in a flash but then plummeted down to $2.5 according to DEXscreener’s data.

Hitesh Malviya, founder of crypto analytics platform DYOR, explained to CoinDesk that the recent price drop seems to be due to liquidity problems, much like what occurred with Renzo last week. In essence, liquidity signifies the market’s capacity to handle substantial buy and sell orders without causing significant price fluctuations. When markets are illiquid, even small transactions can lead to considerable price changes.

As a researcher studying the blockchain industry, I came across Friend.Tech, which made its entrance onto Coinbase’s Ethereum layer-2 solution, Base, around August last year. Initially, this platform operated under an invite-only model and employed a point system that recognized and compensated users based on their involvement.

As a researcher studying the latest developments at Friend.Tech, I can share that the Money Club feature now provides an intimate platform for financial discourse and connection, enhanced with a fresh point system. Notably, approximately $29.8 million in crypto assets are currently secured within Friend.Tech’s ecosystem, representing a significant decrease of over 40% from the record high of $52.04 million attained earlier in October, based on data from DeFiLlama.

Last month, there was a noticeable increase in activity within the crypto community as we approached the anticipated launch of version 2. Initially slated for April 20, this update had been highly anticipated. Additionally, whispers of an upcoming FRIEND token airdrop from the developers further fueled excitement among potential investors like myself.

The platform took a snapshot for the highly anticipated 100% airdrop of FRIEND last week.

Several users, however, seem to be having issues with claiming their airdrop.

Reetika Malik, a crypto expert based in Dubai, mentioned during X that she couldn’t provide her friend with her airdrop because she wasn’t able to claim it herself.

Malviya described the distribution as a “heavily biased drop,” with top creators receiving the largest shares.

As a researcher examining the recent airdrop event, I’ve observed that the majority of participants received only a fraction of what they had anticipated, with many not even bothering to claim their rewards due to the relatively small amounts involved for most retail investors. This suggests a highly concentrated airdrop distribution, with a significant portion of the tokens going to the leading creators or early adopters, leaving the average investor largely overlooked.

Friend.Tech had not responded to a request for clarification by publication time.