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Token Tanks 98% After Airdrop Fails To Deliver

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6 months ago

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Buddy.tech, a social media platform constructed on the Ethereum blockchain, aimed to rejoice the launch of its model 2 protocol with an airdrop of its native token, FRIEND. Nevertheless, the well-intentioned initiative become a cautionary story, with the token’s value experiencing a dramatic nosedive and consumer frustration reaching a fever pitch.

Buddy.tech: Constructing A Social Community On Blockchain

Launched in 2023, Buddy.tech positions itself as a Web3 social media platform that leverages blockchain expertise to foster a extra “genuine” and “decentralized” on-line expertise.

The platform makes use of a novel “key” system, the place customers acquire entry via unique invitations. These “keys” are primarily social tokens constructed on the ERC-20 commonplace, permitting communities inside Buddy.tech to determine their very own governance and financial buildings.

FRIENDly Fake Pas: Airdrop Chaos And Worth Plunge

On Might third, Buddy.tech airdropped FRIEND tokens to its consumer base along side the model 2 protocol rollout. Preliminary pleasure was shortly dampened because the token’s value exhibited a dizzying rollercoaster journey. Hovering to a excessive of $167 shortly after launch, FRIEND then plummeted to a worth underneath $2 inside a matter of hours.

Analysts level to 2 major culprits behind the crash: liquidity points and a sell-off frenzy. Buddy.tech’s preliminary liquidity pool, the available funds for purchasing and promoting tokens, seems to have been inadequate to deal with the buying and selling quantity.

This lack of liquidity meant that even small promote orders had an outsized affect on the value, pushing it down quickly. Additional exacerbating the scenario, a major variety of customers who obtained airdropped tokens opted to promote them instantly, probably capitalizing on the preliminary value spike. This mass sell-off additional depressed the value, making a vicious cycle.

Claiming Challenges Add Gas To The Fireplace

Including insult to harm, the method for claiming airdropped FRIEND tokens reportedly proved cumbersome for a lot of customers. Technical glitches and an unintuitive interface hampered the claiming course of, resulting in consumer frustration and accusations of a poorly designed launch.

Associated Studying: Bitcoin Again In The Bullpen: Whales Spark Rebound With $2.8 Billion Buy

A Silver Lining, Or A Statistical Mirage?

Regardless of the preliminary chaos, there have been some indicators of life for FRIEND. Liquidity has improved considerably, and the variety of token holders continues to develop. Nevertheless, this development may be deceptive.

Bitcoin is now buying and selling at $63.274. Chart: TradingView

With the token value so low, the barrier to entry is minimal, doubtlessly attracting new holders who’re merely curious or hoping for a rebound. Extra importantly, the variety of sellers continues to outpace consumers, indicating a scarcity of long-term confidence within the token’s worth.

Featured picture from Pexels, chart from TradingView

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