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Friend.tech whale’s massive token dump raises doubts on price sustainability

TL;DR

  • Largest Friend. tech airdrop recipient dumped 55,000 tokens, crashing price by over 52%.
  • Users couldn’t claim airdropped tokens, adding to launch frustrations.
  • Experts say whale selloff aids decentralization, and may not impact long-term trajectory.

The largest airdrop taker in the Friend.tech project sold all his tokens a few hours after the airdrop, which raised doubts about whether the token’s price action was guaranteed.

Friend.tech airdrop chaos

Whomever the Friend.tech largest whale “Murphys1d” is has made the surprise move to sell over 55,000 (out of 21,881,000 Friend tokens) he or she received from the airdrop minutes after it was launched on May 3, according to blockchain data.

Beyond the sell-off, some users were unable to claim their airdrop, including crypto investor Luke Martin, who wrote in a May 3 X post:  “When I know the residue price has been fluctuating between 7 and 5 figures for 2 hours, I keep refreshing the page all I want to try to claim, but I still can’t. It is a real insult that cuts me deep.” Martin also said that the whale wallet has established a relationship with X’s less active fake account. This will allow the whale to farm more than 500.000 Friend tech points.

The new Friend.tech (FRIEND) token fell over 52.5% since launch, from $3.26 to just $1.32 as of 9:50 am UTC. The token’s price fell over 32% within the last hour, according to CoinGecko data. While the selling by the largest Friend.tech whale may impact the market in the short term, it doesn’t necessarily dictate a token’s long-term trajectory.

Source: CoinGecko.

Whale dump tanks token price

Anndy Lian,  intergovernmental blockchain expert, pointed out that the token’s value is highly connected to the community’s confidence in Friend.tech and how the team works on the situation at hand. He adds that the mysterious Friend.tech whale is a simple example of a farming squatter, a practitioner who interacts in a protocol that is still emerging for the purpose of farming airdrops.

Airdrop farmers are mainly known for selling every token they’ve been airdropped, which tends to create large amounts of sell pressure and encourage even other legitimate protocol users to sell their tokens.

For instance, two events led to the 55 % decline in OMNI tokens in less than 18 hours following its airdrop. At the end of the day, the token’s market cap will not be that much higher than it was at the time the episode began. In March 2023, the community finally became aware that the given Arbitrum’s address was a replenishment of 1,496 wallets founded by two centrally controlled addresses.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Benson Mawira

Benson is a blockchain reporter who has delved into industry news, on-chain analysis, non-fungible tokens (NFTs), Artificial Intelligence (AI), etc.His area of expertise is the cryptocurrency markets, fundamental and technical analysis.With his insightful coverage of everything in Financial Technologies, Benson has garnered a global readership.

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