Friend.tech Native Token Plummets Following Major Sell-Off
- Friend.tech’s native token, $FRIEND, experienced a significant drop in value following a major sell-off by its largest holder.
- Users were unable to access their airdropped tokens, exacerbating the situation.
- The event highlights the ongoing issue of airdrop farmers impacting token launches.
A closer look at the recent dramatic fall in the value of Friend.tech’s native token, $FRIEND, and the ongoing issue of airdrop farmers impacting token launches.
Major Sell-Off Leads to Price Drop
On May 3, $FRIEND’s value fell by 50% following its debut. This dramatic drop was triggered by the largest holder, known as “Murphys1d,” selling over 55,000 of the newly issued $FRIEND. This sell-off resulted in a 53.3% drop in the token’s price from $3.26 to $1.30.
Users Unable to Access Airdropped Tokens
In addition to the sell-off, users were unable to claim their airdropped tokens, adding to the market instability. This issue contributed to liquidity problems, with the market unable to absorb large buy and sell orders at stable prices. With only $0.01 worth of liquidity, $FRIEND holders were left vulnerable, leading to widespread outrage within the community.
The Issue of Airdrop Farmers
The Friend.tech event is another example of the ongoing issue of airdrop farmers. These individuals interact with emerging protocols solely for the airdrop rewards, often using multiple wallets to increase their gains. This practice can create significant selling pressure, leading to panic among legitimate protocol users and causing them to sell their holdings.
Previous Instances and Future Outlook
In April 2024, a similar event occurred with Omni Network, where their native OMNI token fell 55% in less than 18 hours following its airdrop, losing over half of its market capitalization. While these events can have a significant short-term impact on price action, the long-term effects may be mitigated by the community of investors. Despite the current struggles, $FRIEND may recover in the long term with the support of its investor community.
Conclusion
The dramatic drop in the value of Friend.tech’s native token, $FRIEND, highlights the ongoing issue of airdrop farmers impacting token launches. While these events can cause significant short-term market instability, the long-term outlook may be more positive with the support of the investor community.
