The crypto market witnessed a dramatic decline today. Friend.Tech’s latest version 2.0 has introduced the local token FRIEND, which includes several innovative features such as the Money Club. DEXscreener reported that the price of the FRIEND token initially surged to $169 after trading on Base, but quickly dropped to $2.5.
Reasons for the Altcoin Drop
Founder of crypto analysis platform DYOR, Hitesh Malviya, commented, “It appears that the price drop occurred in a similar fashion to the liquidity issues experienced last week with Renzo.” He explained that liquidity refers to the market’s ability to handle large buy and sell orders, and in a low liquidity environment, a few significant orders can greatly impact the market price.
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Friend.Tech, which was launched in August, has garnered attention as a unique platform with a points system that rewards user engagement. Operating on Coinbase’s Ethereum-based Layer-2 Blockchain, the platform is designed for invited users. The new Money Club feature aims to facilitate financial discussions and networking, while a new points system is also being introduced.
Increased Platform Activity
According to DeFiLlama, at the time of writing, Friend.Tech had approximately $29.8 million worth of crypto assets locked, which accounted for over 40% of the peak value at the beginning of October. However, platform activity significantly increased last month due to the highly anticipated version 2 launch, initially scheduled for April 20, and the expectation of the FRIEND token airdrop.
Last week, a snapshot was taken for the eagerly awaited 100% FRIEND token airdrop. However, some users reported difficulties in claiming their airdrops. Crypto analyst and trader Reetika Malik stated, “I’m not selling my FRIEND airdrop because I can’t even claim it.”
Malviya also addressed this issue, noting that most users received only 10% of the expected airdrop. While a few individuals may have made significant gains, the majority could be dissatisfied with the airdrop due to the falling prices. According to Malviya, such disappointment is quite normal.
Disclaimer: The information provided in this article should not be considered as investment advice. Investors should be aware of the high volatility and risk associated with cryptocurrencies and should conduct their own research.
