Friend.tech’s Native Token Plummets by 50% Following Major Dump by Top Investor

Friend.tech Native Token Plunges 50% as Largest Whale Sells Off Holdings


By Harvey Hunter
Last updated:
May 3, 2024 19:23 EDT
|
1 min read


On May 3, the native token of Friend.tech, $FRIEND, experienced a significant 50% decline in value after the largest whale in the market dumped their holdings. Additionally, users encountered difficulties accessing their airdropped tokens.
According to data from BaseScan, shortly after the airdrop, the biggest holder known as “Murphys1d” sold over 55,000 of the newly issued $FRIEND tokens.
This abrupt sell-off caused the token’s price to plummet by 53.3%, dropping from $3.26 to $1.30 at the time of writing.


Friend.tech Community Struggles to Claim Airdrop
In addition to the sell-off, some users faced challenges when attempting to claim their airdrop, leaving them helpless as the price of $FRIEND tumbled. Crypto investor Luke Martin expressed his frustration, stating that this situation “adds insult to injury.”
In an environment with low liquidity, a few large orders can have a disproportionate impact on the market price.
$FRIEND had a liquidity value of only $0.01, leaving holders susceptible to such fluctuations.
The extremely low liquidity outraged the community, with disgruntled user mcSleuth commenting, “First you charge users with fees, then you make them add liquidity so they can sell to each other.”


Airdrop Farmers Continue to Cause Problems for Token Launches
The Friend.tech dump is just one example of professional airdrop farmers manipulating the market. These “squatters” engage with emerging protocols solely for the purpose of receiving airdrop rewards, often utilizing multiple wallets to maximize their gains.
This behavior comes at a significant cost to the communities surrounding the targeted protocols. The dumps create substantial selling pressure, leading legitimate protocol users to panic and sell their holdings as well, exacerbating the issue.
In April 2024, Omni Network also experienced a similar situation with Sybil farmers. Following its airdrop, the native OMNI token plummeted by 55% in less than 18 hours, resulting in over half of its market capitalization being lost.
While these events can have a detrimental impact on price action, they are typically short-term. Although $FRIEND may face challenges in the aftermath of this incident, its community of investors may ultimately help it recover in the long run.
Follow Us on Google News