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Friend.tech Token $FRIEND Plummets After Largest Whale Dump
The native token $FRIEND of Friend.tech experienced a significant drop of 50% on May 3, following a massive sell-off by the largest holder. This event also impacted users who were unable to access their airdropped tokens.
Largest Holder Sells Off $FRIEND Tokens
According to BaseScan data, shortly after the airdrop, the largest holder known as “Murphys1d” sold over 55,000 of the newly issued $FRIEND tokens. This sudden sell-off caused a drastic 53.3% decrease in the token’s price, plummeting from $3.26 to $1.30.
Community Struggles with Airdrop Access
Aside from the sell-off, some users faced difficulties in claiming their airdrop tokens, leading to frustration as the token’s value dropped. Crypto investor Luke Martin expressed his dismay over the situation, highlighting the challenges faced by community members.
One of Luke Martin’s tweets read: “Watching the value of my airdrop go from 7 figs to 5 figs in the span of 2hrs while I keep refreshing the page trying to claim… still can’t claim. Meanwhile I gotta watch this guy cashout while my wallet won’t even load. Adds insult to injury 💀💀💀.”
Impact of Low Liquidity on $FRIEND
In a low liquidity environment, large sell orders can significantly influence market prices. With only $0.01 worth of liquidity, $FRIEND holders were left exposed to market volatility, sparking outrage within the community.
One user, mcSleuth, expressed dissatisfaction, stating: “First you milk your users with fees, then you get them to add liquidity so that they can dump on each other.”
Continued Challenges with Airdrop Farmers
The incident with Friend.tech is a clear example of professional airdrop farmers exploiting token launches. These individuals, also known as “squatters,” engage with new protocols solely for airdrop rewards, leading to negative consequences for the community.
Similar instances have been observed in other projects, such as Omni Network, where Sybil farmers caused a significant drop in the OMNI token’s value shortly after its airdrop.
While such events can have a short-term impact on token prices, the long-term resilience of $FRIEND’s investor community may help navigate through these challenges.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
