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The native token of Friend.tech, $FRIEND, experienced a 50% decline on May 3 following its launch, as the largest whale liquidated their assets. At the same time, users faced difficulties accessing their airdropped tokens.
According to data from BaseScan, shortly after the airdrop, the top holder, “Murphys1d,” offloaded over 55,000 of the newly minted $FRIEND.
This triggered an immediate 53.3% decrease in the token’s value, dropping from $3.26 to $1.30 at the time of writing.
Friend.tech Community Faces Airdrop Access Issues
In addition to the sell-off, several users were unable to claim their airdrop, leaving them to watch as the price of $FRIEND fell sharply. Crypto investor Luke Martin remarked that this situation only “adds insult to injury.”
Watching the value of my airdrop go from 7 figs to 5 figs in the span of 2hrs while I keep refreshing the page trying to claim….still can’t claim.
Meanwhile I gotta watch this guy cashout while my wallet won’t even load.
Adds insult to injury
— Luke Martin (@VentureCoinist) May 3, 2024
This problem significantly contributed to liquidity challenges – the market’s struggle to handle large buy and sell orders at consistent prices.
In a low liquidity setting, a few substantial orders can greatly influence the market price.
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$FRIEND had only $0.01 in liquidity, leaving holders exposed.
The extremely low liquidity sparked outrage within the community.
“First you milk your users with fees, then you get them to add liquidity so that they can dump on each other,” expressed disgruntled X user mcSleuth.
Airdrop Farmers Continue to Impact Token Launches
The situation with Friend.tech is just one instance of a professional airdrop farmer at work. These “squatters” engage with new protocols solely for the purpose of obtaining airdrop rewards, frequently utilizing multiple wallets to maximize their gains.
This practice comes at a significant cost to the communities associated with the targeted protocols. Such dumps create substantial selling pressure, prompting genuine protocol users to panic and liquidate their holdings.
In April 2024, Omni Network faced a similar issue with Sybil farmers. Their native OMNI token plummeted 55% in under 18 hours after its airdrop, resulting in a loss of more than half of its market capitalization.
While these occurrences can severely affect price movements, they are often only temporary. Although $FRIEND may face challenges in the aftermath of this event, its community of investors may support its recovery in the long run.
The post Friend.tech Native Token Tanks 50% After Biggest Whale Dumps appeared first on Cryptonews.
