The introduction of the Friend token by FriendTech, a Web3 social media platform, has been met with market turbulence as the price significantly dropped after its airdrop event. Having originally been launched at a value of more than $10, the token’s value went down to $1 before slightly correcting to $1.4. This precipitated loss of value came as a result of several operational hitches in the airdrop operation.

Technical Challenges and Market Reactions

Several technical problems were reported during the airdrop, making it difficult for many users to claim their tokens smoothly. Luke Martin, a crypto investor, made his grievance known on social media platform X by saying that the value of his airdrop decreased to his surprise while he was claiming it. This situation has contributed to the general discontent of the token holders and possible investors, which is manifested in the token’s price volatility.

Watching the value of my airdrop go from 7 figs to 5 figs in the span of 2hrs while I keep refreshing the page trying to claim….still can’t claim.

Meanwhile I gotta watch this guy cashout while my wallet won’t even load.

Adds insult to injury

— Luke Martin (@VentureCoinist) May 3, 2024

In addition, market players expressed the initial non-liquidity as one of the causes of the price volatility with the token price briefly reaching $169 before it went down. In the beginning, the token lacked liquidity, however, it was rectified by pumping the liquidity pool to over 4 million dollars. However, this move came after significant market value was lost, negatively influencing investor sentiment.

FriendTech Token Launch

The release of FriendTech’s Friend token was expected to be a revolutionary move for the decentralized platform, especially with the introduction of its Version 2. This new version added features such as “Clubs,” which are a fundamental part of its Version 2, in which trades that involve Friend tokens have a nominal 1.5% fee that goes to liquidity providers. However, the launch was distracted by the quick drop in token value and user issues during the airdrop.

this has to be a joke, friendtech only added $0.01 in liquidity??

so first you milk your users with fees, then u get them to add liquidity so that they can dump on each other

top class team here https://t.co/yFXPwHcAlV pic.twitter.com/ckzqM5pMU5

— mcSleuth (@0xSleuth_) May 3, 2024

Market analysts have opined that the dramatic drop in price was caused by technical problems in the course of the airdrop and the initial lack of liquidity. These circumstances made the token market quite sensitive to price volatility, which was caused by large sale commands. The platform’s liquidity approach made the situation worse since it heavily relied on user contributions and caused the investors to become discontented.

As Friend Tech overcomes these first obstacles, attention will probably turn towards working on stabilization the outlook of the token market and dealing with the technical issues that have caused the airdrop to fail.

Read Also: HK Firm Becomes Top Holder In BlackRock Bitcoin ETF (IBIT)

The post Friend Tech Faces Backlash as Token Price Crashes After Airdrop appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am