{"id":157045,"date":"2023-09-16T11:40:57","date_gmt":"2023-09-16T06:10:57","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=157045"},"modified":"2023-09-16T11:40:57","modified_gmt":"2023-09-16T06:10:57","slug":"dj-3lau-causes-a-stir-after-opting-out-of-friend-tech-over-regulatory-risks-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/dj-3lau-causes-a-stir-after-opting-out-of-friend-tech-over-regulatory-risks-crypto-news\/","title":{"rendered":"DJ 3LAU causes a stir after opting out of Friend.tech over regulatory risks – Crypto News"},"content":{"rendered":"
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Popular DJ and crypto investor 3LAU<\/a> (Justin Blau) has caused a stir in the crypto community after suddenly opting out of decentralized social media platform Friend.tech. Explaining the decision, the DJ highlighted concerns over the regulatory risks that the platform may pose. <\/p>\n

In a Sept. 15 X (Twitter) thread, 3LAU revealed that he stepped away from Friend.tech after \u201cunderstanding more of the risks.\u201d <\/p>\n

\u201cI think it\u2019s an awesome product, but a bit too risky for me (unfortunately). I will be donating the 8-ish ETH to a music-specific charity that I\u2019m passionate about called the Paid In Full Foundation.\u201d<\/p><\/blockquote>\n

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Because people will ask\u2026<\/p>\n

Just off-boarded https:\/\/t.co\/ekERrR7Af3<\/a> after understanding more of the risks.<\/p>\n

I think it\u2019s an awesome product, but a bit too risky for me (unfortunately).<\/p>\n

I will be donating the 8 ish ETH to a music-specific charity that I\u2019m passionate about called\u2026<\/p>\n

\u2014 3LAU (@3LAU) September 15, 2023<\/a><\/p><\/blockquote>\n

3LAU added that his main concern was around the automated market maker (AMM) that enables the trading of user keys (formerly know as shares) on the platform. <\/p>\n

He suggested that such a feature on a social media platform sits in a regulatory gray area that could cause issues<\/a> for users down the track.<\/p>\n

\u201cI don\u2019t think the risks are *high* but I certainly have a responsibility to not engage in less-clear regulatory space[s],\u201d he said, adding that: \u201cEverything there is probably fine minus the AMM mechanic, which holds more risk, and I don\u2019t want my brand to have an AMM associated with it, in this way.\u201d<\/p>\n

The move caused a significant reaction on X, with the 3LAU hashtag fielding a long list<\/a> of tweets from people adding their takes to the situation by either showing support or criticizing the DJ. <\/p>\n

Looking at the comments responding to his post, there were some people accusing him of dumping his shares on his followers, or using them as \u201cexit liquidity.\u201d However, 3LAU has since stated that he will be reimbursing anyone that bought his keys. <\/p>\n

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translation: you dumped on your holders pic.twitter.com\/XAJDMYznlG<\/a><\/p>\n

\u2014 Tom (@thomasjeans) September 15, 2023<\/a><\/p><\/blockquote>\n

Friend.tech was launched in mid-August and the platform enables users to tokenize their social presence<\/a> by buying keys from other users, or selling their own. <\/p>\n

Related: <\/em><\/strong>Stoner Cats NFTs are \u2018fan crowdfunding,\u2019 not securities \u2014 SEC\u2019s Peirce, Uyeda<\/em><\/strong><\/a><\/p>\n

Given that the keys can financially impact users as they cost money and they can fluctuate in value<\/a> in response to a myriad of factors, the move from 3LAU highlights a challenging situation for those who no longer wish to use this type of social media platform. <\/p>\n

In a follow up post, 3LAU clarified how he will compensate impacted key holders after noting that there had been \u201ctoo much drama\u201d surrounding his initial announcement. <\/p>\n

\u201cMaking a split contract to return all of this ETH to 3LAU Friend.tech key holders pro-rata at the block at which I sold the first key. Still donating the full value of all my keys to charity. We cool now? Will follow up w\/ transaction once we get it done.\u201d<\/p><\/blockquote>\n

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Just saw your post. <\/p>\n

One of my cofounders @MartyDevin<\/a> has similar concerns.<\/p>\n

And the way you exited was solid. I actually sold everything other than my own keys a couple weeks ago when they were about to go anti-competitive. https:\/\/t.co\/bD6UAoLiFm<\/a><\/p>\n

\u2014 Flu | wafflesbrah.eth \u26a1\ufe0f (@DeFinalFantasy) September 15, 2023<\/a><\/p><\/blockquote>\n

Magazine: How to protect your crypto in a volatile market \u2014 Bitcoin OGs and experts weigh in<\/em><\/strong><\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Popular DJ and crypto investor 3LAU (Justin Blau) has caused a stir in the crypto community after suddenly opting out of decentralized social media platform Friend.tech. Explaining the decision, the DJ highlighted concerns over the regulatory risks that the platform may pose. In a Sept. 15 X (Twitter) thread, 3LAU revealed that he stepped away […]<\/p>\n","protected":false},"author":2,"featured_media":157046,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[235,203,210,234,231,232,237,238,236,233],"class_list":["post-157045","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain","tag-bitcoin","tag-crypto-currency","tag-elon-musk","tag-ethereum","tag-hyperledger","tag-ibm","tag-mining","tag-nodes","tag-spacex","tag-tesla"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/157045","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=157045"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/157045\/revisions"}],"predecessor-version":[{"id":157048,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/157045\/revisions\/157048"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/157046"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=157045"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=157045"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=157045"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}