Decentralized social media platform Friend.Tech’s highly anticipated token launch and platform update turned sour on Friday, with the FRIEND token experiencing a dramatic price crash and users encountering claiming difficulties.
Despite briefly reaching a high of $169 upon debut on Base, the FRIEND token quickly plummeted to $2.5, raising concerns about liquidity issues. Analysts suggest similarities to the recent Renzo token crash.
Friend.Tech, which debuted last year as an invite-only platform with a point-based reward system, unveiled its Money Club feature alongside the new version 2, aiming to foster financial discussions and networking.
While the platform boasts $29.8 million in locked assets, this represents a significant drop from its October peak, potentially reflecting decreased user engagement.
Despite the airdrop’s initial excitement, several users reported issues claiming their tokens. Crypto analysts suggest a “concentrated airdrop” distribution favored leading creators, leaving many retail investors with significantly smaller-than-expected allocations.
Related: Friend.tech’s Controversial Airdrop: Non-Transferable Tokens and a Potential Cash Grab?
This unexpected token price plunge and claiming difficulties cast a shadow over Friend.Tech’s v2 launch, raising questions about the platform’s long-term viability and the fairness of its token distribution strategy.
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