On Friday, the decentralised social network Friend.Tech unveiled version 2, which is jam-packed with new features like the Money Club, and airdropped its native currency, FRIEND.
Data from DEXscreener reveal that the token’s price spiked to $169 right after it started trading on Base, then it crashed to $2.5 very fast.
“It appears that liquidity concerns have been the driving force behind the price dump, akin to what transpired with Renzo last week,” Hitesh Malviya, the creator of the cryptocurrency analytics website DYOR, stated. The market’s capacity to take in sizable buy and sell orders at steady pricing is referred to as liquidity. A small number of large orders can have a significant influence on the market price in a low liquidity environment.
Friend.Tech made its debut as an invite-only platform with a point system that incentivizes users for their engagement in August of last year on Coinbase’s Ethereum-based layer-2 blockchain Base.
Along with a new point system, the new Money Club feature will enable an exclusive forum for networking and financial debate. According to DeFiLlama, as of the time of publication, Friend.Tech had $29.8 million worth of crypto assets locked up, which is more than 40% less than the peak of $52.04 million in early October.
Last month, activity increased in front of the version 2 launch, which was originally scheduled for April 20, as well as the developer-teased FRIEND token airdrop.
The site captured a moment during last week’s much awaited 100% FRIEND airdrop.
However, it appears that some users are having trouble claiming their airdrop.
Reetika Malik, a trader and cryptocurrency analyst located in Dubai, stated on X that she was not selling her FRIEND airdrop because she was unable to claim it.According to Malviya, the material was distributed in a “concentrated airdrop,” with top creators taking the majority of it home.
“Most users got 10x less airdrop than what they were expecting, so they are not even claiming that airdrop, as its less than 200$ for most of the retail investors,” Malviya stated in a direct message to X. Nonetheless, a small number of people did end up becoming extremely wealthy. Thus, it’s evident that there was a highly concentrated airdrop, with top creators taking the majority of the supply home via airdrop, concealing their retail presence.” Friend.By the time of publication, Tech had not replied to a request for clarification.