FriendTech’s native Friend token dropped sharply from trading over $10 after its launch to $1, marking a fall of over 90% before slightly recovering. The token even traded briefly at $169, data shows. It’s currently changing hands at $1.4, according to DexScreener.
The native token of the web3 social media platform currently has almost 18,000 holders and a circulating supply of about 14.5 million.
Most of the selling took place while several users reported on Xthat they were still unable to claim the airdrop. “Watching the value of my airdrop go from 7 figures to 5 figures in the span of 2 hours while I keep refreshing the page trying to claim….still can’t claim. Adds insult to injury,” crypto investor Luke Martin posted.
Others speculated that the price dump may have been driven by liquidity issues. Liquidity refers to the market’s capacity to handle significant buy and sell orders at stable prices. In low liquidity environments, a few large orders can swing market prices disproportionately.
While the token may have had low liquidity at the start, DexScreener shows its current liquidity stands at north of $4 million. Earlier today, the token opened for trading via Bunny Swap that’s accessible via the app.
On Friday, decentralized social platform FriendTech airdropped its native token while unveiling version 2 of the platform.
Version 2 features ‘Clubs,’ which are community spaces owned and operated by key holders. The keys to the Clubs will be transacted in Friend tokens, with a 1.5% fee to every transaction that goes to liquidity providers on its DEX.
FriendTech made its debut in August of last year on Coinbase’sEthereum Layer 2 blockchain Base as an invite-only networking service that leverages social tokens called “Keys” that give users access to exclusive chats and content from creators.
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