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Well-known DJ and cryptocurrency enthusiast Justin Blau, recognized by his stage name 3LAU, has generated considerable discussion within the crypto community after abruptly withdrawing from the decentralized social media platform Friend.tech. In explaining his choice, the DJ expressed apprehensions regarding the regulatory risks associated with the platform.
In a thread on X (formerly Twitter) dated September 15, 3LAU disclosed that he departed from Friend.tech after “gaining a better understanding of the risks.”
“I think it’s an awesome product, but a bit too risky for me (unfortunately). I will be donating the 8-ish ETH to a music-specific charity that I’m passionate about called the Paid In Full Foundation.”
Because people will ask…
Just off-boarded https://t.co/ekERrR7Af3 after understanding more of the risks.
I think it’s an awesome product, but a bit too risky for me (unfortunately).
I will be donating the 8 ish ETH to a music-specific charity that I’m passionate about called…— 3LAU (@3LAU) September 15, 2023
3LAU noted that his primary concern revolved around the automated market maker (AMM) that facilitates the trading of user keys (previously referred to as shares) on the platform.
He indicated that such a feature on a social media platform exists in a regulatory gray area that could lead to complications for users in the future.
“I don’t think the risks are *high* but I certainly have a responsibility to not engage in less-clear regulatory space[s],” he remarked, adding that: “Everything there is probably fine minus the AMM mechanic, which holds more risk, and I don’t want my brand to have an AMM associated with it, in this way.”
The decision prompted a notable response on X, with the 3LAU hashtag attracting numerous tweets from individuals sharing their perspectives on the matter, either in support of or in criticism of the DJ.
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In reviewing the comments in response to his post, some individuals accused him of abandoning his shares on his followers or utilizing them as “exit liquidity.” However, 3LAU has since affirmed that he will reimburse anyone who purchased his keys.
translation: you dumped on your holders pic.twitter.com/XAJDMYznlG
— Tom (@thomasjeans) September 15, 2023
Friend.tech, which was introduced in mid-August, allows users to tokenize their social presence by purchasing keys from other users or selling their own.
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Considering that the keys can have financial implications for users as they incur costs and can vary in value due to multiple factors, 3LAU’s withdrawal underscores a complex situation for those who no longer wish to engage with this type of social media platform.
In a subsequent post, 3LAU elaborated on how he would compensate affected key holders after acknowledging that there had been “too much drama” surrounding his initial announcement.
“Making a split contract to return all of this ETH to 3LAU Friend.tech key holders pro-rata at the block at which I sold the first key. Still donating the full value of all my keys to charity. We cool now? Will follow up w/ transaction once we get it done.”
Just saw your post.
One of my cofounders @MartyDevin has similar concerns.
And the way you exited was solid. I actually sold everything other than my own keys a couple weeks ago when they were about to go anti-competitive. https://t.co/bD6UAoLiFm— Flu | wafflesbrah.eth ⚡️ (@DeFinalFantasy) September 15, 2023
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