Why Friend.Tech’s FRIEND Token Broke After Crypto Airdrop

Friend.Tech, a decentralized social media platform, has launched its highly anticipated crypto airdrop.

Shortly after its introduction, the FRIEND token platform experienced a significant price drop when it released its latest version, Friend.Tech V2.

Friend.Tech releases Airdrop, FRIEND Token Drops

On May 3, Friend.Tech rolled out its native Friend and introduced version 2 of the platform, featuring new additions such as Money Club. After the start of trading on Base, the price of the token increased to $169 but dropped significantly to $3.26.

A few hours after the largest crypto airdrop recipient on Friend.Tech received his entire token holdings, he was concerned about the liquidation's impact on the token's market value. As a result, the FRIEND token experienced another 52.5% drop, dropping from $3.26 to $1.32.

The erratic price movement appears to be related to liquidity. Liquidity is the market's ability to accommodate large purchases and sales without significant price changes. In less liquid markets, a small number of large transactions can have a disproportionate impact on market prices.

“This must be a joke mate. Tech only added $0.01 in liquidity. So first you shower your users with fees, then you add liquidity to fight each other. There's a high level group here,” said one member of the crypto community.

Read more: What is Friend.Tech? A deep dive into the Web3 social media application

Despite the controversy, Friend.Tech is the ninth-largest protocol on the Base network (TVL) with a total value of about 28 million dollars.

The introduction of Money Club in V2 aims to revive interest as communities can now manage shared treasuries. Other features to improve user interaction include customizable engagement metrics in conversations. These improvements will help friend.tech not only increase platform usage, but also help it regain its competitive edge in decentralized social networks.