Summary: Felix, PANews

Based on Base, the decentralized social platform Friend.Tech became a hot topic during the May Day holiday. On May 3, it launched the V2 version and airdropped its native token FRIEND. After the announcement of the airdrop, it was expected to bring a wave of enthusiasm and favor to the project, but it instead sparked mockery within the crypto community. DexScreener data shows that FRIEND plummeted nearly 98% after its launch, rapidly dropping from around $169 to about $3.26. According to CMC data, it even dropped to as low as $0.8 before rebounding to the current price of $2.53. This article takes you through the ins and outs of the Friend.Tech airdrop event.

Airdrop Returns Far Below Expectations, and Distribution is "Highly Concentrated"

After the FRIEND airdrop, some analysts criticized the distribution mechanism, claiming that creators received more token allocations compared to retail investors. Hitesh Malviya, the founder of the crypto analysis platform DYOR, stated that this distribution was a "concentrated airdrop."

"Most users received 10 times less than what they expected, so many of them didn't even bother claiming the airdrop because for most retail investors, the amount was less than $200. At the same time, very few ended up profiting significantly, so this is a highly concentrated airdrop case."

Largest Airdrop Recipients Quickly Dump Tokens, Some Users Unable to Claim

The largest recipient of the airdrop on Friend.Tech sold off all the tokens within hours of the airdrop, causing concern in the market. Blockchain data shows that the largest whale "Murphys1d" sold over 55,000 FRIEND tokens shortly after the airdrop went live, leading to an initial 50% price drop. The whale's sell-off triggered panic selling in the market, further driving the price down.

During this period, some users complained about API malfunctions, preventing them from claiming tokens as the price dropped. Crypto trader Luke Martin expressed on X platform, "I kept refreshing the page trying to claim, watching the value of my airdrop drop from seven figures to five figures within 2 hours, but couldn't claim."

Researcher 0xCygaar pointed out that the surge in traffic caused Friend.Tech's backend to overload, and it was evident that no expansion measures were taken. The proof used to check user eligibility also malfunctioned, and some even resorted to manually claiming the airdrop from the contract using BaseScan via the browser.

Even those who successfully claimed tokens had grievances, as the price dropped from $2.78 to $1.49 within less than four hours, a 46% plunge. The community believes that besides trading on BunnySwap, the lack of transferability for FRIEND and the developers only adding $0.01 of liquidity were the main factors for its rapid price decline.

Club Feature Also Questioned

Friend.Tech was initially launched in August 2023, offering only an invitation service with a reward points system. The V2 version introduced new features such as Money Club and a new points system. Money Club provides users with an exclusive space for financial discussions and interactions, while the new points system aims to reward users for their contributions and interactions on the platform.

However, the Club feature also faced criticism from some users. In order to drive traffic to the Club feature, only 10% of the airdrop could be directly claimed by each user, and obtaining the full airdrop required joining the "Money Club" and following 10 users on v2. The software also had some bugs, with users reporting that newly created Clubs were not displaying. Additionally, Friend.Tech quietly integrated its own exchange (RabbitRouter + BunnySwap) into the application, charging a 1.5% trading fee, as pointed out by Ethereum investor @eric.eth.

Dune data shows that since the release of V2 on May 4, the number of Clubs has reached 112,346, with a total trading volume of 16,899,404 FRIEND and Club fees amounting to 252,651 FRIEND.

It is worth noting that despite the "poor" performance of the Friend.Tech token after its launch, there were still whales who profited. According to Lookonchain's monitoring on May 5, the top 5 buyers of FRIEND had accumulated a total profit of $2.89 million.

Furthermore, according to The Data Nerd's monitoring, three days ago, a savvy investor, 0xA26, spent $1.18 million to accumulate 732,000 FRIEND at an average entry price of $1.61, currently unrealized profit of about $807,000.

Despite the controversy, Friend.Tech remains an important participant in the Web3 social media field. Whether it can continue to lead the SocialFi wave in the future remains to be seen.

Related Reading: Friend.Tech Airdrop is Here, Where Will the Creator Economy Focused on Issuing New Assets Go?

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