The freshly launched and long-awaited FRIEND token is trading at just a $25 million market cap following a launch that left many community members complaining.<\/p>\n
On May 3, the entire supply of FRIEND became claimable alongside Friend\u00a0Tech\u2019s\u00a0v2 iteration. Friend Tech v2 also introduced a native decentralized exchange, BunnySwap, a revamped networking and social platform dubbed Money Club, and a new points system.<\/p>\n
However, with many users experiencing errors when attempting to claim their tokens, FRIEND being non-transferable except to trade on BunnySwap, and\u00a0BunnySwap\u2019s\u00a0liquidity pool reportedly\u00a0seeded<\/a>\u00a0with a single FRIEND token, the project has attracted widespread criticism.<\/p>\n \u201cThey’re\u00a0likely going to seed with that 1 [FRIEND]\u00a0and it’ll\u00a0be a madhouse from there,\u201d\u00a0tweeted<\/a>\u00a00xBreadguy, a DeFi developer.\u00a0\u201cWalled garden for degens away from any exchanges, who literally\u00a0can’t\u00a0interact without having faked being a normal user first.\u00a0It’s\u00a0on-chain anarchy for the foreseeable future.\u201d<\/p>\n \u201cThe Friend Tech claim\u00a0is cooked\u00a0because the app is generating the wrong proofs,\u201d\u00a0said\u00a0<\/a>0x5f_eth of Ethos Network.\u00a0\u201cDoesn\u2019t\u00a0seem like everyone has the issue.\u201d<\/p>\n \u201cFor [Friend Tech co-founder]\u00a0Racer\u2019s\u00a0final act,\u00a0he\u2019s\u00a0enabled\u00a0the ability for\u00a0users to watch the price of $FRIEND free fall on the app without being able to load their wallet balance or claim their tokens,\u201d\u00a0said<\/a>\u00a0SplitCapital, a crypto analyst.<\/p>\n According to CoinGecko, FRIEND crashed 67% over three hours to a low of $0.89 after debuting at $3.26. However, price data from DexScreener shows roughly twice as much chronological price action, including a brief spike to\u00a0roughly\u00a0$170 that reversed over 15 minutes.<\/p>\n The token has since posted a sharp bounce from its low to change hands at $1.57, still equating to a meager market cap of $25.3 million.<\/p>\n Luke Martin, the host of the Stacks Podcast,\u00a0said<\/a>\u00a0they were stuck watching the value of their airdrop allocation fall from seven figures in value to five figures over two hours while unsuccessfully attempting to claim.<\/p>\n Martin also\u00a0flagged<\/a>\u00a0one of Friend\u00a0Tech\u2019s\u00a0larger farmers unloading six figures worth of FRIEND immediately after claiming.\u00a0\u201cThis was the largest sybil on Friend Tech dumping all his points in one clip,\u201d\u00a0Martin said.<\/p>\n Friend Tech burst onto the burgeoning SocialFi scene in August 2023. The platform allows users to buy and trade\u00a0\u201ckeys\u201d\u00a0allowing access to chatrooms associated with Twitter accounts.<\/p>\n With prominent crypto analysts promising keyholders access to exclusive tips and alpha while\u00a0also\u00a0earning a 5% fee on key trades, Friend Tech rapidly emerged as a\u00a0booming web3 platform<\/a>.<\/p>\n Friend Tech also earns a 5% fee on\u00a0key\u00a0sales, driving\u00a0$1 million<\/a>\u00a0in daily revenue as volume peaked above $20 million in September, according to Dune Analytics.\u00a0However, activity on the platform has since collapsed, with volume slumping to an all-time low below $60,000 on March 2.<\/p>\n Data from Dune Analytics also shows daily users dipping below 1,000 in April, marking a pullback of more than 99% from its October high of nearly 74,000.<\/p>\nSteep price decline<\/h2>\n
Fall from grace<\/h2>\n
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