- Crypto users express dissatisfaction over the drastic drop in the price of the newly launched FRIEND token.
- The FRIEND token, part of the blockchain SocialFi project friend.tech, dropped by 98% shortly after its debut due to glitches in the airdrop claim process.
- An analyst highlighted a significant imbalance between the added liquidity and collected fees on the friend.tech platform.
Following the launch of the FRIEND token, users express dismay over its 98% price drop and glitches in the airdrop claim process. An analyst points out a significant liquidity-fee imbalance on the friend.tech platform.
Unprecedented Drop in FRIEND Token Price
The recently launched FRIEND token of the blockchain SocialFi project friend.tech has seen a significant drop in price, much to the dismay of crypto users. The token, which debuted on May 3, saw a 98% drop shortly after its launch. Users involved in the project’s airdrop have voiced complaints about the claim process, as they watched the value of their newly acquired tokens plummet.
Imbalance in Liquidity and Collected Fees
Following this unusual behavior, a Messari analyst known as Average Joe’s Crypto on X noted a significant imbalance between the added liquidity and collected fees on the friend.tech platform. According to the analyst, the team behind friend.tech added a liquidity level that was disproportionate to the amounts collected in fees. Users reportedly paid $30 million in farming costs for a token that has a liquidity of only $3 million.
Issues with the Airdrop Claim Process
Many users have also complained about the clunky nature of the token’s claim portal. This has allowed successful claimants to sell large chunks of the tokens, resulting in a further drop in prices while others struggled with claiming their airdrops. One user reported that he watched the value of his airdrop go from seven figures to five figures within two hours while watching others cash out significant claims.
Conclusion
Despite the initial issues and price drop, conditions appear to have improved for the FRIEND token. As of the time of writing, the token’s price has rebounded to trade for $1.68, according to data from DEX Screener. The token’s liquidity also showed significant improvement, reflecting a value of $17.5 million, with a market cap of $140 million. This situation serves as a reminder of the volatility and risks inherent in the crypto market, especially with newly launched tokens.
