Friend.Tech Native Token Drops to $2.5 after Debut

As a researcher with experience in the decentralized finance (DeFi) and blockchain industry, I find the sudden price drop of Friend.Tech’s FRIEND token following its debut on Base concerning. The initial surge in price to $169 upon trading commencement was expected given the excitement surrounding the launch of version 2 and the much-anticipated airdrop. However, the swift plunge to $2.5 raises red flags.

Friend.Tech, a decentralized social platform, held an airdrop of its native token, FRIEND, concurrently with the release of version 2 of their platform. Subsequently, after making its debut on Base for trading, the FRIEND token underwent a substantial price decrease from $169 to $2.5.

Experts explain that this significant price decrease may be linked to possible liquidity problems, reminiscent of the recent crisis with the Renzo token. Essentially, it means there aren’t enough buyers or sellers in the market to keep the price steady.

Based on information from DEXscreener, the token’s price spiked to $169 at the start of trading on Base, only to then rapidly drop down to $2.5. According to DeFiLlama, at present, Friend.Tech holds around $23.63 million in cryptocurrency assets, which represents a significant decrease from its peak value of over $52.04 million in early October.

In the latest iteration, Version 2, the corporation unveils an array of fresh elements. Among these innovations is the Money Club, which offers unique financial discourse through a new point system and a private platform for financial professionals to connect and collaborate.

During the past month, there was a significant increase in user engagement due to the highly anticipated release of version 2, originally slated for April 20th, together with the promised FRIEND token distribution.

Recently, the platform captured a picture of the complete distribution of FRIEND’s airdrop, sparking enthusiasm among users. Nevertheless, some individuals are experiencing challenges in collecting their airdrop rewards.

Reetika Malik, based in Dubai and involved in trading and cryptocurrency analysis, expressed on X that she didn’t distribute her FRIEND airdrop receipt since she couldn’t manage to secure it herself. Malviya described the distribution method as a “concentrated airdrop,” implying that most of it went to the leading personalities within the community.

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2024-05-03 19:48