Earnings were much lower than expected, and a review of Friend.Tech Airdrop events

Original compilation: Felix, PANews

The Base-based Decentralization social platform Friend.Tech became a hot topic during the May Day holiday, and on May 3, it launched its V2 version, along with the Airdrop of the native Token FRIEND. After the Airdrop was announced, Ben would have staged an Airdrop feast that brought a wave of heat and goodwill to the project, but it caused a lot of ridicule from the encryption community. DexScreener data shows that FRIEND big dump nearly 98% after its launch, once falling sharply from around $169 to around $3.26, and according to CMC data, the lowest falls to $0.8 after the launch, and then climbed, currently trading at $2.53. This article takes you through the ins and outs of Friend.Tech Airdrop events.

Airdrop returns are much lower than expected, and the distribution is too “concentrated”

AFTER FRIEND’Airdrop LAUNCH, SOME ANALYSTS CRITICIZED THE DISTRIBUTION MECHANISM, CLAIMING THAT CREATORS RECEIVED A MORE long Token DISTRIBUTION THAN retail investor. Hitesh Malviya, founder of encryption analytics platform Do your own research (DYOR), said the allocation was a “centralized Airdrop.”

"The longest number of users received 10 times less airdrops than they expected, so they didn’t even claim the airdrops because for longest retail investors, the airdrop was less than $200. At the same time, very few people end up making a lot of profits, so this is a very concentrated case of airdrops. ”

The largest recipient of the Airdrop quickly closed all positions, and some users could not even claim it

The largest Airdrop recipient on Friend.Tech sold all Token within hours of Airdrop, raising concerns about the market. Blockchain data shows that the largest Whale “Murphys 1 d” sold more than 55,000 FRIEND Tokens a few hours after the Airdrop went live, causing the price to initially fall by about 50%. The sell-off in Whale triggered panic selling in the market, causing further downward fall.

During this time, some users complained that the API was malfunctioning, resulting in the inability to claim tokens when the price falls. Encryption trader Luke Martin said on the X platform: “I kept refreshing the page trying to claim and watched the value of my Airdrop drop from 7 to 5 figures in 2 hours, but I couldn’t claim it.”

Researcher 0x Cygaar noted that the traffic spike was overloading Friend.Tech’s backend, and apparently no scaling measures were taken. The proof used to check user eligibility also glitched, and there were even some tutorials for manually claiming Airdrops from the contract via the browser BaseScan.

Even those who managed to claim the token complained that the price falls from $2.78 to $1.49 in less than four hours, a big dump of 46%. The community believes that FRIEND is non-transferable except for trading on BunnySwap, and that the developer’s increase in Liquidity of only $0.01 is a major factor in its price fall so quickly.

The Club feature has also been questioned

Friend.Tech was originally launched in August 2023 as an invite-only service to the reward points system, and the V2 version introduces new features such as Money Club, a new points system, and more. Money Club will provide users with exclusive financial discussion and communication shorts, while the new points system is designed to reward users for their contributions and interactions on the platform.

But the Club feature has also been criticized by some users. On the one hand, in order to draw attention to the Club function, in the Airdrop design, only 10% of the Airdrop can be directly claimed by each user, and to get the full Airdrop, you need to join the “Money Club” and follow 10 users on v2. There are also some bugs in the software, such as users reporting that the newly created club is not displayed. In addition, Friend.Tech did not forget to keep silent, Ethereum investor @eric.eth pointed out that Friend.Tech v2 integrates its own exchange (RabbitRouter + BunnySwap) in the app, charging a 1.5% transaction fee.

Dune data shows that since the release of V2 on May 4, the number of clubs has reached 112, 346, with a total transaction volume of 16, 899, 404 FRIENDS, and club fees of 252, 651 FRIENDS.

It is worth mentioning that despite the “poor” performance of the Friend.Tech Token after its launch, there are still Whale profitable. According to Lookonchain’s monitoring on May 5, the top 5 buyers of FRIEND have accumulated a floating profit of $2.89 million.

In addition, according to The Data Nerd monitoring, 3 days ago, a Satoshi investor, 0x A 26, spent $1.18 million, accumulating 732,000 FRIENDS with an average entry fee of $1.61, and currently has an unrealized profit of about $807,000.

Despite the controversy, Friend.Tech is still a significant player in the Web3 social media space, and it remains to be seen whether it will continue to lead the SocialFi wave in the future.

Compiled in the original language