Friend.tech's Largest Airdrop Recipient Sells All Tokens, Sparks Market Concerns and Trust Issues
Summary:
After the largest airdrop on Friend.tech, the top recipient "Murphys1d" abruptly sold over 55,000 Friend tokens, creating anxieties about the token's future value. Some investors were unable to claim their airdrops, adding to the prevailing unease. The sell-off would lead to a broader distribution and reduce control risk, but the token's future value is dependent on public trust and the team's crisis management. The presence of professional airdrop farmers compounds the issue as they create selling pressure, often causing panic selling among legit users. This problem came to the forefront when $3.3 million in tokens from an Arbitrum's airdrop was consolidated from 1,496 wallets into only two.
Shortly after the airdrop on Friend.tech platform took place on May 3, the event's largest beneficiary known as "Murphys1d" dumped over 55,000 of the freshly released Friend tokens, as per blockchain records. Consequently, there are worries about the future direction of the token's value. Adding to the trouble, a few individuals were unable to access their airdrops, including digital currency investor Luke Martin. He commented about the situation on May 3, stating his frustration at being unable to claim his airdrop while its value plummeted from seven to five figures in the span of just two hours. Martin also raised suspicions about the leading whale wallet being connected to a counterfeit X account that allowed it to accumulate over 500,000 Friend.tech points without risking anything. Since its introduction, the price of the newly launched Friend.tech (FRIEND) token has plummeted by over 52.5%, from $3.26 to merely $1.32 as of 9:50 am UTC, with a fall exceeding 32% in the past hour, CoinGecko data confirms. Despite the potential near-term consequences of the chief Friend.tech whale's sell-off on the market, blockchain expert and author Anndy Lian stated it won't necessarily ascertain the token's long-term path. He suggested that the sell-off might help decentralize token distribution, a move that would lower the chances of a sole party having excessive dominance over the venture. Nonetheless, Lian emphasized that the token's value will primarily depend on the public's trust in Friend.tech and the team's handling of the situation. A future downside of the airdrop system is the presence of professional airdrop farmers (or squatters), who exploit emerging mechanisms only to receive airdrop benefits, often through multiple accounts to enhance their rewards. They usually divest their airdropped tokens, producing strong selling pressure that scares genuine protocol users into panic selling. This was observed recently last month when the OMNI token from the Omni Network plunged by 55% in under 18 hours post-airdrop, costing over half of its market value. Further compounding the system's issues, it came to light in March 2023 that airdrop chasers had consolidated $3.3 million in tokens from Arbitrum's ARB airdrop from 1,496 wallets into just two that they controlled.
Published At
5/3/2024 1:19:24 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.