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News/Friend.tech's Rocky Launch With Token Turmoil and Community Backlash

Friend.tech's Rocky Launch With Token Turmoil and Community Backlash

Van Thanh Le

May 3 2024

2 months ago3 minutes read
Friend tech chaos token crash, robot havoc

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Friend.tech Token Launch: Triumphs and Turbulence

Friend.tech's introduction of its native token and the updated version of its decentralized social platform initially sparked high community excitement. However, this quickly turned to frustration as many users found themselves unable to claim their airdropped FRIEND tokens. 

Reports from early May 2024 highlight complaints from users like one stating, “Literally all my friend.tech points are gone and I have 0 FRIEND to claim?” This has stirred considerable discontent among the community, especially as these tokens were expected from an April snapshot.

The FRIEND token experienced severe price instability immediately upon launching. The token's value nosedived from an initial trading price of $169 to just $1.685 within mere hours of its release on May 3, 2024. 

dexscreener.com_FRIEND_WETH_2024-05-03_19-43-04.png
The price at the time of publishing has seen an over 98% drop.

The sharp decline was linked to liquidity challenges, which have historically plagued new crypto tokens by failing to buffer substantial trade volumes without significant price fluctuations.

Launched in August 2023 on Coinbase’s Ethereum-based layer-2 blockchain, Base, Friend.tech initially served as an invite-only hub where users could trade "keys" associated with Twitter accounts. A new addition, Clubs, aims to boost user engagement by creating community-owned spaces controlled by key holders.

Adding to the platform’s challenges, the rollout of the Money Club feature—designed for financial networking—faced significant technical glitches, particularly affecting users’ eligibility for airdrops due to unrecognized participation in new club features.

The situation worsened when a significant holder of the airdrop, known as "Murphys1d," offloaded over 55,000 FRIEND tokens shortly after the airdrop, causing the token's price to plunge an additional 52.5% from $3.26 to $1.32. This move underscored issues with token distribution equity and spurred further price instability.

Criticism over token distribution fairness has grown, with leading creators receiving the majority of the airdrop, leaving smaller investors disheartened and threatening to offload their holdings. This has significantly eroded trust in Friend.tech’s management of the token launch.

Despite these hurdles, experts like Anndy Lian propose that the sell-off may ultimately contribute to a more evenly spread token distribution, potentially leading to market stabilization. However, the realization of this stability hinges on sustained community trust and the developers’ adept handling of the ongoing challenges.

Conclusion

Friend.tech's token launch encountered significant roadblocks, including airdrop claim issues, severe price volatility, and distribution equity concerns. These hurdles eroded community trust, but experts believe the sell-off might pave the way for better distribution and eventual market stability, contingent on regained trust and adept management from the developers.

FAQs

1. Why were users unable to claim their FRIEND tokens?

Many users reported issues claiming their airdropped FRIEND tokens due to technical glitches with the Money Club feature, which determined airdrop eligibility based on user participation.

2. What caused the FRIEND token's price to crash?

The token's value plummeted from $169 to $2.5 within hours due to a lack of liquidity, which made the price susceptible to large sell orders. A major token holder selling a significant portion of their airdrop further exacerbated the decline.

3. What are the concerns regarding token distribution fairness?

Criticism exists over the allocation of a large portion of the airdrop to prominent creators, leaving smaller investors feeling discouraged and potentially leading them to sell their tokens.

4. Is there hope for Friend.tech's token to stabilize?

While the initial sell-off may lead to a more even token distribution, market stability hinges on regaining community trust and the developers' ability to address the ongoing challenges effectively.

This article has been refined and enhanced by ChatGPT.

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