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Friend.tech Whale Sells Off Airdropped Tokens, Shakes Market

Key Takeaways

  • "Murphys1d," the largest Friend.tech airdrop recipient, dumped 55,000 tokens within hours of the airdrop, causing a 56.8% price drop;
  • Technical glitches prevented legitimate recipients from claiming tokens;
  • A positive outcome of this token dump is that it could lead to a more decentralized distribution of tokens, according to Anndy Lian.
Friend.tech Whale Sells Off Airdropped Tokens, Shakes Market

"Murphys1d," the largest recipient of the Friend.tech airdrop, sold over 55,000 FRIEND tokens within hours of their airdrop on May 3.

This caused the token's price to drop by 56.8%; at the time of writing, it is valued at $1.16.

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Technical issues also added to the problem, as some legitimate recipients were blocked from claiming their tokens.

Crypto investor Luke Martin shared his frustration on social media, saying:

Watching the value of my airdrop go from 7 figures to 5 figures in two hours while I keep refreshing the page trying to claim....still can't claim. Meanwhile I gotta watch this guy cashout while my wallet won't even load. Adds insult to injury.

Despite these challenges, there may be some potential positive outcomes of this token dump. Anndy Lian, a blockchain expert, suggested that while the sell-off might cause a short-term dip, it could lead to a more decentralized distribution of tokens, adding:

A broader distribution reduces the risk of a single entity having excessive control over the project.

Lian also acknowledged that the token’s future will largely depend on the community’s continued trust and the managing team's response to the situation.

This incident underlines the issue of airdrop farmers, who engage with platforms only to claim airdrops and often create multiple accounts to maximize their gains.

As the Friend.tech team grapples with these issues, the community waits to see how they will address both the technical hurdles that blocked token claims and the broader implications of this market upset.

EigenLayer, an Ethereum restaking protocol, has also recently dealt with issues surrounding the airdrop of its native EIGEN token. Due to community backlash, the protocol decided to increase the airdrop by about 28 million tokens.

Aaron S., Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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