Decentralized social media platform Friend.tech is gearing up for its v2 launch and airdrop on May 3rd, but a leaked smart contract suggests a controversial feature: a non-transferable token. This has sparked debate within the crypto community, with some questioning its alignment with Friend.tech’s anti-venture capitalist stance.
According to DeFi researcher CBBOFE, the Friend.tech v2 smart contracts might introduce a non-transferable token called $POINT. While tradable on the platform’s native DEX, BunnySwap, users won’t be able to sell or exchange them elsewhere, except for designated protocol addresses. This has drawn comparisons to the recent EigenLayer airdrop, which also utilized a non-transferable token, leading to significant community backlash.
Crypto analyst Kasper Vandeloock suggests this move could be a veiled attempt to enforce the platform’s 1.5% fee. “If you can’t transfer it, you are forced to sell it through them, which has the 1.5% fee,” he stated, highlighting the irony of Friend.tech potentially profiting significantly while promoting an anti-VC image.
The new $POINT token will serve as a utility token, allowing users to create social clubs on the platform, potentially incurring the 1.5% fee. Additionally, users staking their ETH and Points tokens within the Friend.tech smart contract will be rewarded with the new tokens.
Also Read: EigenLayer Hemorrhages Users: 12,412 Withdrawals in 3 Days After Airdrop Fiasco
While the non-transferable token has caused friction, some argue it could benefit the long-term price action of the cryptocurrency by curbing the initial airdrop selling pressure often seen in crypto projects. Examples like The Omni Network’s OMNI token and Wormhole’s W token illustrate the drastic price drops that can occur following airdrops due to mass selling by uncommitted participants.
Friend.tech’s v2 launch remains shrouded in controversy with the potential implementation of a non-transferable token. Whether this strategic move will backfire or serve its intended purpose in the long run is yet to be seen.
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