Friend.tech whale triggers token plunge, users struggle amid airdrop chaos

The largest Friend.tech (FRIEND) whale, identified as “Murphys1d,” sent shockwaves through the crypto community by swiftly offloading over 55,000 newly issued FRIEND tokens right after the platform’s airdrop launch on May 3.

The whale’s move caused the value of the FRIEND token to plummet by more than 75%, with prices nosediving from $3.26 to just $0.8095 within hours. Although the price had recovered to around $1.17 at press time, the sudden token sell-off has caused chaos among users just after the token airdrop launch.

Users like Luke Martin lamented their inability to claim their airdropped tokens, exacerbating the situation.

Friend.tech (FRIEND) whale sell-off: airdrop farming on the rise

The actions of Murphys1d highlight the persistent issue of airdrop farming, where opportunistic actors exploit emerging protocols solely for airdrop rewards. These farmers, often operating with multiple wallets, engage in mass sell-offs post-airdrop, intensifying sell pressure and triggering panic among legitimate users.

Notably, this isn’t the first instance of such turmoil; the Omni Network’s OMNI token experienced a 55% drop in market capitalization within 18 hours following a similar incident. Similarly, Arbitrum’s ARB token saw $3.3 million worth of tokens consolidated by airdrop hunters in 2023, underscoring the ongoing challenge faced by new token launches.

As experts like Anndy Lian, a noted intergovernmental blockchain expert, suggest, while such sell-offs may induce short-term volatility, they could contribute to a more decentralized token distribution, mitigating the risk of single entities wielding excessive control over the project.

However, the long-term trajectory of the FRIEND token hinges on the community’s trust in Friend.tech and the team’s adept handling of the crisis.

With users anxiously monitoring the situation and hoping for resolution, the fallout from this episode serves as a stark reminder of the complexities and risks inherent in the burgeoning world of decentralized finance.

The post Friend.tech whale triggers token plunge, users struggle amid airdrop chaos appeared first on Invezz