Friend.Tech’s FRIEND Token Rollercoaster: From $169 to $2.5 in hours
Friend.Tech, a decentralized social platform built on Coinbase's Ethereum-based Layer-2 blockchain base, launched version 2 of its infrastructure on Friday, May 3, 2024, alongside its native token, Friend.
Originally launched in August 2023 as an invitation-only service with a rewards points system, the platform has now introduced new features such as Cash Club and an updated points system.
TLDR
When Friend.Tech launched version 2 of the platform on Friday, May 3, 2024, FriendTech went native. The token's price rose to $169 but quickly fell back to $2.50, likely due to liquidity problems and an intensive airdrop in favor of the lead creators. Version 2 introduces new features such as Money Club and a points system, with $29.8 million worth of crypto assets locked in by Friend.Tech. Some users have reported issues with claiming their airdrops, and the distribution appears to favor lead creators over retail investors. A leaked smart contract reveals plans to unlock non-transferable v2 tokens called POINTS, which will pay a 1.5% fee on transfers after launch to help protect the token's market value.
The FRIEND token experienced high volatility upon launch, with its price rising to $169 before quickly dropping to $2.50.
Experts suggest that the price drop could be due to liquidity problems, as was the case with Renzo last week. Accumulated headwinds that favor early adopters over retail investors have also contributed to price volatility.
Despite the rocky start, Friend.Tech has gained popularity in the Web3 space, with $29.8 million worth of crypto assets locked in the platform, although this figure is more than 40% higher than the $52.04 million in early October.
The release of version 2 and the speculation surrounding the FRIEND token airdrop caused a flurry of activity on the platform in the weeks leading up to its launch.
Many users have expressed that they have problems in claiming their air drops, which has caused frustration among the community. Some analysts criticized the airdrop distribution, saying it disproportionately benefited leading innovators as it fell short of retail investors' expectations. Friend.Tech has not yet responded to requests for clarification on these issues.
Looking ahead, a leaked smart contract indicates that Friend.Tech may be planning to introduce non-transferable v2 tokens called POINTS. Following in the footsteps of EigenLayer's non-transferable EGEN token, this move is seen as an attempt to protect the token's market value after launch.
By charging a 1.5% fee on transfers, Friend.Tech aims to discourage early sales and exchanges of tokens except to certain authorized addresses.
As Friend.Tech continues to navigate challenges by launching native tokens and introducing new features, the platform remains a significant player in the Web3 social media space.
With a focus on community-based content and exclusive access through social tokens, Friend.Tech is well positioned to capitalize on the growing interest in decentralized social networks.
