- Since FriendTech airdropped the token to launch version 2 of the web3 social media network, the value of Friend has dropped by more than 90%.
The native Friend token of FriendTech saw a significant decline, falling from over $10 at launch to $1, representing a collapse of more than 90% before a minor recovery.
According to data, the cryptocurrency even briefly traded as $169. DexScreener indicates that it’s now trading for $1.4.
There are now over 18,000 holders of the web3 social networking platform’s native token, out of a total circulating quantity of roughly 14.5 million.
While some people were complaining on X that they were still unable to claim the airdrop, the majority of the selling was happening. “I keep refreshing the screen in an attempt to claim, but I’m still unable to do so, while I watch the value of my airdrop drop from seven figures to five figures in just two hours. Adding insult to injury “Luke Martin, a cryptocurrency investor, commented.
Others conjectured that liquidity concerns might have been the catalyst for the price dump. The ability of the market to accommodate sizable buy and sell orders at steady pricing is referred to as liquidity. A small number of large orders can have a disproportionate impact on market prices in low liquidity circumstances.
Despite the token’s initial low liquidity, DexScreener indicates that it currently has more than $4 million in liquidity.
The coin became available for trading earlier today through the app-accessible Bunny Swap.
FriendTech’s airdrop of tokens
Decentralized social network FriendTech unveiled version 2 of the platform on Friday and began airdropping its native token.
In version 2, there are community areas called “Clubs,” which are run and owned by key holders. The Clubs’ keys will be exchanged for Friend tokens, and each transaction on the DEX that involves a liquidity provider will incur a 1.5% fee.
FriendTech is an invite-only networking service that debuted in August of last year on Coinbase’s Ethereum Layer 2 blockchain Base. It uses social coins called “Keys” to grant users access to producers’ exclusive discussions and content.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
