Renowned DJ 3LAU Departs Friend.tech Citing Regulatory Risks; Will Donate Crypto Holdings to Charity
Summary:
DJ and crypto investor 3LAU has stirred up the crypto community by opting out of decentralized social media platform Friend.tech due to regulatory concerns. He will be donating his cryptocurrency holdings to a music-specific charity. The move has sparked a reaction on Twitter, with users expressing both support and criticism towards 3LAU. Friend.tech allows users to tokenize their social presence by buying and selling keys. 3LAU's decision highlights challenges faced by users in this type of platform.
Renowned DJ and cryptocurrency investor, 3LAU (Justin Blau), has caused a stir in the crypto community by abruptly withdrawing from decentralized social media platform Friend.tech. Citing concerns over regulatory risks, the DJ expressed his decision in a Twitter thread on September 15th. He emphasized that while he considers it an excellent product, the platform carries too much risk for him and clarified that he will be donating his 8-ish ETH to a music-specific charity called the Paid In Full Foundation.
3LAU specifically pointed out his apprehension regarding the automated market maker (AMM) feature that facilitates the trading of user keys on the platform. He expressed that this feature potentially falls into a regulatory gray area, which may pose issues for users in the future. Although he stated that the risks are not extremely high, he believes it is his responsibility to refrain from participating in less transparent regulatory spaces. He expressed that aside from the AMM mechanism, the platform is generally sound, but he does not want his brand to be associated with an AMM in this manner.
This move prompted a significant reaction on Twitter, with users expressing various opinions towards 3LAU's decision. Some showed support, while others criticized the DJ. Certain individuals accused him of selling his keys and leaving his followers behind, but 3LAU clarified that he will reimburse anyone who bought his keys.
Launched in mid-August, Friend.tech offers users the ability to tokenize their social presence by purchasing keys from other users or selling their own. These keys hold financial value, as their prices can fluctuate based on numerous factors. 3LAU's decision reflects the challenges faced by individuals who no longer wish to engage with this type of social media platform. In a subsequent post addressing the ensuing drama, 3LAU assured those affected that he will develop a split contract to compensate Friend.tech keyholders proportionately based on the block at which he sold the first key. He also reiterated his commitment to donating the full value of his keys to charity.
Published At
9/16/2023 6:02:10 AM
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