Good day everybody,
Welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at the recent news of a whale dumping the largest held amount of Friend.tech's token and the concerns it created over the token's price action.
Friend.tech
Following the airdrop of the $FRIEND token back on the 3rd of May this year, the largest airdrop recipient went on to sell all of their tokens just a few mere hours after the airdrop. This move from the largest whale, known as “Murphys1d,” saw the sale of over 55,000 of the tokens according to blockchain data.
Other users meanwhile have difficulties accessing their airdrop tokens, with some users seeing the value of the token falling while they were still tyring to claim their airdrop. One user, @VentureCoinist, noted how they were helpless as they could only watch the value of the token crashing while they still could not claim.
The sale of so many tokens by the whale wallet was linked to a fake X account with no activity. This meant the account could farm over 500,000 Friend.tech points risk-free, which lead to a fall of over 52.5% in the $FRIEND token since its launch. The price action saw the price go from $3.03 to just $0.89 at 12.00 GMT+1, according to CoinGecko data. It has since risen back as high as $2.47.
FRIEND/USDT chart. Source: CoinGecko
The selling of the tokens by the whale impacted the market, but only in a short-term manner. The long-term trajectory of the token could very well move in a different direction. Anndy Lian, intergovernmental blockchain expert and author of NFT: From Zero to Hero, told Cointelegraph:
“While it might cause a short-term dip in price due to increased supply and potential panic selling, it doesn’t always mean a long-term downtrend. To me, it is a good thing […] The sell-off would mean a more decentralized distribution of tokens. A broader distribution reduces the risk of a single entity having excessive control over the project.”
However some users were still left baffled and unimpressed by how the team has managed the current situation. With such a low liquidity in the environment, with $FRIEND having only $0.01 worth of liquidity meant its holders were left vulnerable. A couple of large orders can have a large impact on the market, and this has sparked some outrage in the community.
This Friend.tech whale is just the latest example of a professional airdrop farmer who ensures to interact with emerging protocols solely for the airdrop rewards. This often results in the use of multiple wallets to compound rewards. These airdrop farmers often market sell all their airdropped tokens, which leads to significant sell pressure and results in more panic selling of holdings by legitimate users.
Back at the end of April this year the Omni Network’s saw its OMNI token fall by about 55% in less than 18 hours following its airdrop. The token lost over half of its market capitalization due to the farming by Sybil farmers. Airdrop hunters also managed to nab a $3.3 million worth of tokens from Arbitrum’s ARB airdrop back in March 2023. This consisted of 1,496 wallets into just two wallets before the token dump onto the market. These events can have a huge negative impact on price action, albeit often only in the short-term.
$FRIEND may struggle following this event but the team will be hoping their strong community of investors can help get it over this bump and keep going into the longterm.
Have a great day.
Peace. CryptoGod-1.
Referral Links and Follow Me:
