Friend .tech v2 airdrop can introduce a non-transferable token.
Decentralized social media platform Friend.tech is gearing up for a version two launch and airdrop on May 3, but it suggests the leaked smart contract may have controversial features, including a non-transferable token.
Non-transferable tokens could be introduced to the climate, says anonymous decentralized finance researcher CBBOFE, in a May 2 X post I've Got Smart Contracts.
“The ticker is $POINT, it will not be forwarded except to certain authorized addresses. $POINT is traded on BunnySwap (FT native DEX).
A non-transferable token means that the receivers of the coin cannot sell or exchange the coins except within certain authorized protocol addresses.
Reestablishing Protocol EigenLayer has also decided to release an airdrop-proof token for EIGEN, which is the main reason for the recent furor against EigenLayer.
Friend.tech made the token non-transferable in order to make users pay a 1.5% fee, said Kasper Vandeloock, a quantitative crypto trader and consultant at X10 exchange. He told Cointelegraph.
“If you can't transfer, you are forced to sell through them, which is a 1.5% fee. […] As a profit factory for Paradigm, they bring this strong ‘us the anti-VC' vibe to the table.
The new potential token, POINTS, will act as a utility token to create social clubs on the platform, which may incur a 1.5% platform fee, according to CBBFOE:
“A new smart contract called Clubs. Anyone can create multiple clubs and bond curves from a variety of options. 1.5% platform fee and 1.5% stock contract. Club keys are purchased with $POINT.”
The new tokens will be awarded to users who deposit their Ether (ETH) and POINTS tokens into the Friend.tech smart contract.
The announcement caused consternation among crypto enthusiasts. Anonymous crypto trader MK commented:
“I really hate Eigen for starting this untranslatable meta.”
Related: EigenLayer Sees Over 12,000 Queues – How Much Will TVL Fall?
Non-transferable tokens may reduce initial airdrop sales pressure.
While non-transferable tokens are generating a lot of community outrage, tokens can benefit from long-term price action as they show significant declines following airdrops.
In late April, Omni Network's OMNI token dropped 55% in less than 18 hours after it went live, losing more than half of its market capitalization.
Wormhole's W token dropped nearly 25% in value a few hours after its April 3 airdrop. According to CoinMarketCap, the token is down more than 47% since the weather.
Crypto airdrops are usually full of professional airdrop hunters (or scooters) who land the same airdrop in multiple wallets to use the protocol for a long time and sell the reward after asking.
In the year In March 2023, airdrop hunters were revealed to have merged $3.3 million worth of tokens from an Arbitrum ARB airdrop from 1,496 wallets into two wallets they controlled.
Related: LayerZero's cross-chain interoperability protocol completes first Airdrop snapshot
