Friend.tech Whale Dumps Tokens, Users Struggle to Claim Airdrop

The largest recipient of the Friend.tech airdrop has caused concerns by selling all of his tokens just hours after receiving them. Blockchain data reveals that “Murphys1d” sold over 55,000 Friend tokens shortly after the airdrop went live on May 3. Alongside this sell-off, some users, including Luke Martin, were unable to claim their airdrop, resulting in frustration and disappointment. Martin also noticed that the whale’s wallet seemed to be linked to a fake account, allowing the whale to obtain over 500,000 Friend.tech points without any risk. Since the launch of the new Friend.tech token, its value has dropped by over 52.5%, from $3.26 to just $1.32.

The rapid decline in price has raised concerns among investors. Anndy Lian, an intergovernmental blockchain expert, believes that the selling by the largest whale does not necessarily determine the token’s long-term prospects. Lian suggests that the sell-off can lead to a more decentralized distribution of tokens, reducing the risk of a single entity having excessive control over the project. Lian emphasizes that the token’s value will depend on the community’s trust in Friend.tech and how the team handles the current situation.

The case of the Friend.tech whale is an example of a professional airdrop farmer or squatter. These individuals participate in airdrops to solely reap the rewards, often utilizing multiple wallets to maximize their gains. The issue arises when these farmers market sell all their airdropped tokens, creating significant sell pressure and causing panic selling among legitimate protocol users. A similar incident occurred with the Omni Network’s OMNI token, which experienced a 55% drop in value within 18 hours after its airdrop, resulting in a significant loss in market capitalization. In another instance, airdrop hunters consolidated $3.3 million worth of tokens from Arbitrum’s ARB airdrop into just two wallets they controlled.

The presence of airdrop farmers continues to pose challenges for token launches. Their actions can disrupt the market and lead to a decrease in the value of newly issued tokens. It is crucial for projects to find effective measures to address this issue to ensure a fair distribution and maintain investor confidence.