Friend.Tech’s Native Token Plunges to $2.5 Following Release
Friend.Tech made headlines when it airdropped its native token, FRIEND, coinciding with the launch of version 2 of its platform. However, the excitement quickly turned into disappointment as the token’s price plummeted from a high of $169 after the airdrop to just $2.5. This drastic drop in value raised concerns about liquidity issues within the market. Hitesh Malviya, founder of crypto analytics platform DYOR, compared the situation to the previous Renzo incident, emphasizing the impact of liquidity on market prices.
Originally launched in August on Coinbase’s Base, Friend.Tech initially operated as an invite-only platform with a point system rewarding user engagement. Version 2 was eagerly anticipated, especially due to the introduction of the Money Club feature, which aimed to create a space for financial discussions and networking. The platform also implemented a new point system. However, the total value locked in Friend.Tech dropped significantly, falling to $29.8 million from a peak of $52.04 million in early October, according to DeFiLlama.
Ahead of the version 2 launch, user activity surged, fueled by the promise of the FRIEND token airdrop. However, some users encountered difficulties in claiming their airdrop. Dubai-based crypto analyst and trader Reetika Malik expressed frustration over the situation, stating that she was unable to claim her FRIEND airdrop. Malviya revealed that the distribution of the airdrop seemed to heavily favor leading creators, leading to disappointment among retail investors who received much less than anticipated.
At the time of publication, Friend.Tech had not provided any clarification regarding the airdrop. As the platform and its native token continue to navigate through these challenges, the community eagerly awaits further updates and developments.