Friend.tech, a social media platform built on blockchain, wanted to celebrate the launch of its new version with an airdrop of its FRIEND tokens. But things didn’t go as planned.
Airdrop Chaos
On May 3rd, Friend.tech airdropped FRIEND tokens to its users. The price of the token shot up to $167 but then crashed to under $2 within hours.
Two main reasons for the crash:
- Liquidity issues: Friend.tech’s initial liquidity pool wasn’t big enough to handle the trading volume.
- Sell-off frenzy: Many users sold their airdropped tokens immediately, which drove the price down even further.
Claiming Challenges
To add insult to injury, many users had trouble claiming their airdropped tokens due to technical glitches and a confusing interface.
A Silver Lining?
Despite the initial chaos, there have been some signs of improvement. Liquidity has gotten better, and the number of token holders is growing. However, the price of FRIEND is still very low, and more people are selling than buying. This suggests that investors aren’t confident in the token’s long-term value.
