The native token of Friend.tech, $FRIEND, experienced a significant 50% drop in value on May 3 after its debut, as the largest whale holder sold off a large portion of their holdings. This sell-off resulted in a 53.3% decrease in the token’s price from $3.26 to $1.30. Additionally, some users were unable to access their airdropped tokens, adding to the negative impact on the token’s value. The low liquidity of the token made it susceptible to large sell orders, further exacerbating the situation.
The inability of some users to claim their airdrop tokens led to frustration within the community, as many were left unable to prevent the significant drop in $FRIEND’s price. The low liquidity of the token made it challenging for the market to absorb the large sell orders, leaving holders vulnerable to price fluctuations. This liquidity issue sparked outrage within the community, with users expressing their frustrations at the situation. The low liquidity also contributed to the impact of the whale dump on the token’s value.
The dump of $FRIEND by the largest whale holder is an example of a professional airdrop farmer, who participates in new token launches solely for the airdrop rewards. These individuals often have multiple wallets to maximize their rewards, leading to significant selling pressure on the token. This trend of airdrop farming is not unique to Friend.tech, as other protocols have also been targeted by these individuals, resulting in similar price drops. While these events can have a negative impact on price action in the short term, the long-term prospects of the token are dependent on the support of the community of investors.
Airdrop farming has become a prevalent issue in the crypto space, with squatters targeting emerging protocols for airdrop rewards. This practice has led to significant price drops in tokens such as $FRIEND and Omni Network’s OMNI token. The selling pressure created by these airdrop farmers can cause panic among legitimate protocol users, leading to further selling of tokens. Despite the negative impact of airdrop farmers on token launches, the long-term viability of these tokens is often determined by the support of the investor community, which can help stabilize prices and drive growth in the future.
