Friend.Tech's Native Token Plummets Post-Launch

[TL; DR]

Friend.Tech launched its version 2 platform which has boosted scalabilit, securit and user privac.

The Friend.Techs native token which debuted at a high value of $169 experienced a sharp drop within a short period. Investors who will stake ETH on Friend.Tech smart contract will earn its utilit token, POINTs.

Introduction

Friend.tech, a decentralied social platform, has turned into a leading plaer in the SocialFi sector. To position itself as a great competitor in the industr the protocol has initiated several activities to attract more users and serve different geographical regions. Recentl, it launched its version 2 protocol and airdropped its native crptocurrenc, FRIEND. This article covers how Friend progressed with its airdrop and version 2 launch. We will also discuss its features and prospects.

Friend.Tech's Token Debut and the Immediate Price Drop

Ma has become a smbolic month for Friend.Tech, a decentralied social platform based on Base, after the launch of its version 2 protocol and airdrop, aimed at attracting man users to the platform. Friend.Tech launched both its airdrop and version 2 protocol on 4 Ma. Although the crpto communit anticipated the two developments to take Friend.Tech to the next level the SocialFi platform faced challenges with its airdrop.

DexScreener, an on-chain data aggregator focusing on real-time data analsis from multiple decentralied exchanges (DEXs), indicates that soon after Friend.Tech airdrop launch the FRIEND token price rose sharpl before plummeting. The data aggregator shows that the price of the Friend.Tech native token (FRIEND) fell b 98% to US$2.50 after debuting at US$169. Bitrue also captured the moment that the FRIEND Token spiked to $169 as the following graph indicates.

Read also: Top 10 Popular NFTs in the Base Ecosstem FRIEND Momentar Price Spike - Bitrue

As The Graph indicates, the FRIEND price onl spiked for a ver short period. That is a reason wh other crpto analtic firms like CoinGecko and CoinMarketCap have not indicated that the FRIEND token price ever rose to $169. For example, data on CoinGecko shows that after the launch, FRIENDs price rose to $3.26 before falling b 48.52% from that peak.

As of now, CoinGecko indicates that FRIENDs all-time high was $3.26 with an all-time low of $0.8332. On the other hand, its current price is 32.2% lower than its ATH. In the meantime, Base networks contract shows that FRIEND has a maximum suppl of 93,033,081.900000 and 53,779 holders.

When writing, FRIEND is trading at $2.21 after gaining b 12.1% within the last 24 hours. The token is within a bearish trend since it has lost b 4.3% within the last seven das as the next graph indicates. FRIEND Price Movement between 4 and 12 Ma CoinGecko

As observed from the diagram, FRIEND is in a ranging market as its value has been fluctuating between $1.59 and $3.04 within the last two weeks.

FRIEND Token Airdrop and Version 2 Platform Launch

After the version 2 platform launch on Coinbase Ethereum Laer2 (BASE) the decentralied social platform users experienced several problems. In fact, the protocol users reported various challenges related to the airdrop.

First, the users complained about the crpto reward sstem that was used for the airdrop, where the creators received man more FRIEND tokens than the retail investors. The cause of such huge discrepancies was the use of a centralied airdrop distribution sstem.

As per Odail News, Hitesh Malvia, the founder of DYOR, a crpto analtics platform, explained the cause of such an unequitable airdrop distribution sstem. He said, Most users received 10 times less than the expected, so the didnt even claim it because it was less than $200 for most retail investors. At the same time, ver few people ended up making a lot of mone, so it was a ver concentrated case of an airdrop.

As a result, some retail investors refused to claim the airdrop since it was below their expectations. One of such individuals is Reetika Malik, a Dubai-based crpto analst and trader. Posting on X Malik said, I'm NOT selling m $FRIEND airdrop (Cause I can't even claim it).

It is also important to note that the FRIEND crpto airdrop had strings attached to it. For example, ever user could receive 10% of the airdrop without an conditions. However, to claim the rest of the airdrop a user had to join the Mone Club and follow at least 10 others.

The platform also had API glitches preventing other users from claiming their FRIEND token airdrop. For example, some users had problems accessing the Mone Club interface. Cgaar, a crpto investor was one of the people who experienced Friend.Techs backend problems are shown in the following screenshot. Source: x.com

Liquidit Issues behind FRIEND's Price Collapse

The retail investors and creators who successfull claimed the Friend.Tech native token airdrop faced another challenge, that of high crpto market volatilit. Although the value of FRIEND rose to $169 upon its launch the crptocurrenc price drop that followed disheartened man FRIEND enthusiasts. Their hope of a sudden financial gain dithered when the FRIEND price dropped to $2.50 soon after a strong surge.

Several crpto analsts contend that the FRIEND crpto market volatilit resulted from liquidit issues similar to what occurred to Reno the previous week. The main problem was that the FRIEND token was not transferable and was onl available for trading on BunnSwap. More significantl, as McSleauth confirmed on X, the developers onl added $0.01 of liquidit. Source: x.com

Insufficient liquidit meant that even small sell-orders had a big impact on the FRIEND token price fluctuation. What made the situation worse was that a large number of individuals chose to sell their airdropped tokens in response to the debut high FRIEND value. Thus, the resultant high sell-pressure led to a sharp FRIEND price drop. Source: x.com

Introducing Version 2: New Features and the Mone Club Initiall, Friend.Tech, launched in August 2023, used an invitation-onl service and a reward points sstem. Now, its V2 version launch includes new features such as the Mone Club and a revised points sstem. Notabl, the Mone Club Friend Tech feature has an exclusive communication and financial discussion space.

On the other hand, the revised points sstem will reward Friend.Tech users for their engagement and other contributions on the platform. According to Dune, a data analtic platform, since 4 Ma, when Friend.Tech released V2 there are more than 112,346 clubs with a total transaction volume of over 16,899,404 FRIENDs. Likewise, the transaction fees have surpassed 252,651 FRIEND tokens.

In the meantime, a leaked FRIEND smart contract indicates that the decentralied social platform intends to introduce non-transferable v2 tokens. At the same time, it will also introduce a 1.5% fee for transfers with the aim of preserving FRIENDs value. As CBBOFE has indicated on X, the users will utilie the points to bu clubs. Source: x.com

POINTS will be a native utilit token which the holders can stake and earn a reward. More significantl, POINTs will be traded on BunnSwap, Friend.Techs native DEX. The main function of POINTS is to enable the creation of social clubs on the platform. However, POINTS holders can onl transfer the token to whitelisted wallet addresses which ma help to preserve its value. The users will mostl earn POINTS from staking their ETH in the Friend.tech smart contract.

Engagement and Rewards: Friend.Tech's Strateg

Friend.Tech has devised a means of rewarding its most active users like developers and content creators. To achieve that the platform has advanced tools that enable users to create and share content in a convenient manner.

Also, Friend.Tech has unique monetiation opportunities for the content creators. As such, the participants can earn its native token which has real world value. The token holders can use the crpto asset to access premium services or convert their holdings to other crptocurrencies.

What's Next for Friend.Tech and FRIEND Token?

The recent launch of Friend.Tech version 2 has brought renewed interest in the SocialFi platform. As a result, after the launch the number of active users increased remarkabl while more than 15,000 clubs have been created. However, the analsis of the data shows that most of the active users are returning members.

One of the things that is holding back the users is lack of clear communication from the Friend.Tech team. Therefore, to promote the growth of the platform and appreciation of FRIEND the team should keep in constant touch with its members to maintain their interest and motivation in the project.

The future of Friend.Tech depends on its recent airdrop and V2 upgrade which repositioned it as a leading decentralied social networking in crpto platform. Its new innovative features and communit engagement will likel lead to a rise in the demand for its services and native crptocurrenc.

The highl anticipated V2 upgrade is ke to user empowerment which should drive its growth. For example, the V2 upgrade has improved its scalabilit as well as its securit and privac which will likel elevate its usabilit and user satisfaction.

Conclusion

After the launch of Friend.Techs Version 2 and its airdrop the value of FRIEND rose to $169 before plummeting to $2.50. The main causes of the sharp price drop were insufficient liquidit and a high sell-off. The version 2 platform supports the creation of social clubs and a new utilit token, POINTs. In the meantime, the users have alread created over 15,000 clubs which enhance social engagement.