Friend.tech token drops to $2.5 despite airdrop claims and V2 version

Today, decentralized social platform friend.tech launched its own token, FRIEND, while unveiling the platform’s V2 rollout. The token’s price initially rose to $169 before collapsing to $2.5. The rapid price drop was attributed to liquidity problems. The rapid price drop was attributed to liquidity issues, echoing recent events with other tokens.

Community discontent and distribution problems

The long-awaited airdrop of the FRIEND tokens and the launch of version 2 of the platform faced challenges upon release. Many users encountered problems claiming their airdrop, while others expressed dissatisfaction with the distribution of the tokens.

The X account Mooncat2878 expressed frustration over the lack of transparency and communication regarding friend.tech’s airdrop. Others, like crypto analyst Reetika Malik, expressed their frustration about not being able to claim the airdrop.

Controversial positions and compensation structures

In addition to the FRIEND token, the platform also has a POINT token in prospect that is non-transferable. This POINT token is expected to be central to the Money Club feature of the V2 rollout, which will require users to pay a 1.5% platform fee. This has been criticized for its ironic attitude, as the platform previously had an anti-venture capitalist image.

Despite these setbacks, friend.tech aims to continue growing with innovative features such as Clubs, which allow users to create exclusive social spaces. However, the launch has highlighted broader issues within the crypto space, such as the potential problems with non-transferable tokens. While this may reduce the initial sales pressure, it raises concerns about user autonomy.

What is friend.tech?

Friend.tech is a blockchain-based social platform that uses token-gated chats through tradable tokens called “keys”. This innovative approach may allow users to capitalize on a content creator’s growing popularity. The platform experienced spikes in activity shortly after its launch in August 2023. This was largely driven by features such as the monetization concept, Progressive Web App, embedded wallet, key price bonding curve and Layer-2 rollup.

However, activity has slowed recently. Friend.tech determines key prices using a bonding curve, a mathematical formula that adjusts token prices based on buying and selling activity. Critics question the platform’s long-term sustainability, as its monetization model could encourage user churn rather than stable relationships.

Similar platforms, such as Stars Arena and fan.tech, have popped up, offering unique features like tips and fractional shares. Nevertheless, friend.tech remains a notable contender in the social crypto space and it will be interesting to see if SocialFi platforms catch on in the coming bull market.