Airdrop of the Friend.tech token, from Base, causes the asset’s price to plummet 98%

Decentralized social networking ecosystem Friend.tech, launched in August 2023, faces a significant setback as its native token, FRIEND, suffers a 98.5% drop in value.

Investors who participated in the recent FRIEND token airdrop expressed serious concerns about the development, highlighting issues with token redemption and app functionality.

Upon making its debut, the FRIEND token entered the market with a trading price of $169 per token, attracting 18,000 holders and boasting a circulating supply of 14 million tokens.

However, the current price has plummeted to approximately $1.26, resulting in a market cap of $27.7 million and liquidity of $5.4 million, according to data from DexScreener. This left many investors frustrated.

Friend.tech tem airdrop malsucedido

The airdrop process, which aimed to distribute tokens to the community, faced its own challenges. Users on social media expressed frustration with the declining value of their distributed tokens.

Some had difficulties claiming their tokens. Meanwhile, others saw the value of their holdings decline significantly in a matter of hours.

One user even accused a prominent figure of orchestrating a “rug pull,” further fueling community discontent.

Despite the current devaluation, some cryptocurrency analysts predict a possible recovery for the FRIEND token. Cryptocurrency analyst Daan Crypto Trades suggests that the token’s value could increase in the future, emphasizing that market sentiment could change once users start seeing returns on their investments.

However, concerns remain regarding the functionality of the Friend.tech app, which faced significant issues during its first few weeks.

DeFi researcher DeFi Ignas expressed his disappointment with the Friend.tech V2 launch, describing it as a “massive fiasco.” Ignas criticized the application’s usability problems and questioned whether the team’s focus was misplaced during development.

Additionally, speculation arose about whether the team deliberately orchestrated a price drop to trigger a subsequent increase in value. Despite this, the self-proclaimed main creator on the Friend.tech platform, using the pseudonym “Captain Levi”, declared that the fund has already been given and that the token should start rising:

“The drop is brutal, but actually healthy, as sellers dump at very low prices, while real users haven’t even woken up to the V2’s full potential. I believe we have seen the bottom and the price should slowly recover as users buy in,’ he said.