Friend.tech’s Native Token Plunges by 50% Following Massive Dump by Largest Whale

Friend.tech Native Token Plummets 50% as Largest Whale Dumps


By Harvey Hunter
Updated: May 3, 2024, 19:23 EDT
|
Reading time: 1 minute


Friend.tech’s native token, $FRIEND, experienced a 50% drop on May 3 after the biggest whale sold off their holdings. Additionally, users faced difficulties accessing their airdropped tokens.
According to BaseScan data, shortly after the airdrop, the largest holder known as “Murphys1d” sold over 55,000 of the newly issued $FRIEND tokens.
This resulted in an immediate 53.3% decrease in the token’s price, falling 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 were unable to claim their airdropped tokens, leaving them helpless as the price of $FRIEND plummeted. Crypto investor Luke Martin expressed his frustration, stating that this situation “adds insult to injury.”
In a low liquidity environment, large orders can have a significant impact on the market price.
$FRIEND had only $0.01 worth of liquidity, making holders vulnerable to such fluctuations.
The extremely low liquidity sparked outrage within the community.
Disgruntled user mcSleuth commented, “First, you charge users with fees, and then you make them provide liquidity so they can dump on each other.”


Airdrop Farmers Continue to Impact Token Launches
The Friend.tech dump is just one example of professional airdrop farmers affecting the market. These “squatters” engage with emerging protocols solely for the airdrop rewards, often utilizing multiple wallets to maximize their rewards.
This practice comes at a significant cost to the communities associated with the targeted protocols. Dumps create substantial selling pressure, leading legitimate protocol users to panic and sell their holdings, exacerbating the issue.
In April 2024, Omni Network experienced a similar situation with Sybil farmers. Their native token, OMNI, fell by 55% in less than 18 hours after its airdrop, resulting in a loss of over half of its market capitalization.
While these events can have a strong negative impact on price action, it is often only temporary. Although $FRIEND may face challenges following this incident, its community of investors may ultimately support its recovery in the long run.
Follow Us on Google News