Crypto Investor Loses $16 Million Amid Friend.tech’s Controversy And Token Crash
10 Setembro 2024 - 1:00AM
NEWSBTC
Crypto social media platform Friend.tech faced backlash after a
controversial decision by its team. The platform’s native token,
FRIEND, plummeted over 42%, reaching its all-time low (ATL) price
amid the controversy. As a result, an Ethereum (ETH) whale saw its
investment in the token drop by over 95%. Related Reading: FET
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Friend.tech Loses Investors’ Trust Over the weekend, crypto
platform Friend.tech announced its decision to resign control over
its smart contracts to avoid future changes. Friends.tech is a
Social Finance (SocialFi) platform launched in 2023 that combines
the principles of social media and Decentralized Finance (DeFi).
The project is a blockchain-based social platform built on
Ethereum’s Layer-2 Base, offering users the potential to profit
from content creation. The crypto platform allows creators to
monetize their content by using tradeable tokenized shares, known
as “Keys,” to access their exclusive publications and private
chats. On September 7, Friend.tech’s team revealed it had sent the
admin and ownership of its smart contracts to Ethereum’s null
address “to prevent any changes to their fees or functionality in
the future.” Per the post, the change won’t affect the “separate
web client operated at friend.tech which will continue as is.”
Additionally, fees from the smart contracts or the platform are not
going to the developer team’s multisig. Following the news, the
project’s community shared their discontent, expressing their
disbelief about the decision. A community member called the team’s
recent actions “The best display of WORST LEADERSHIP ever in crypto
history.” Meanwhile, others questioned whether the decision was
“the final nails in the coffin, or ribbons on a present?”
Investor’s doubt was founded in May when the project’s airdrop
presented several issues. However, distrust was cemented when the
platform announced it would build its blockchain, “Friendchain,” in
June. After the backlash, Friend.tech announced it had abandoned
the project in a now-deleted post. This decision dragged its
token’s price down by over 35% in July. Crypto Whale Investment
Drops 94% Since the news dropped, FRIEND’s price decreased by 42%.
The cryptocurrency plummeted from the $0.102 mark to the $0.0593
level over the weekend. On Monday morning, the crash drove the
token’s price to its ATL of $0.0574, nearly a 98% drop from its
all-time high (ATH) of $3.26. As the token hit its lowest price, a
crypto investor saw its investment nosedive over 95%. Blockchain
research platform Spotonchain revealed that a whale had lost over
$15 million on its FRIEND holdings. Per the report, Taiwanese
personality Machi Big Brother was a “hard-core bull” on the
platform’s token. The whale was at nearly $16 million in realized
and unrealized losses after spending around $18 million worth of
ETH to acquire FRIEND tokens. Machi bought 15.99 million FRIEND
tokens between May 9 and August 13 at an average price of $1.125.
The trader also accumulated FRIEND by providing liquidity on
BunnySwap during this period. As the token’s value declined over
the months, the investor sold around 5.26 million tokens to cut
loss. At the time, the sale was worth $2.27 million at an average
token price of $0.431, representing a 61.7% realized loss. Related
Reading: Dogecoin (DOGE) Bulls Aim to Clear $0.10: Will It Happen?
Machi’s remaining 11.1 million FRIEND tokens had a 94.5% unrealized
loss, worth $11.4 million. At the time of the report, the whale’s
holdings were worth around $689,000. The cryptocurrency has
recovered 32% from its ATL, briefly hitting the $0.09 mark earlier
today, according to Coingecko data. As of this writing, FRIEND is
trading at $0.0761, a 2.1% surge in the last 24 hours. Featured
Image from Unsplash.com, Chart from TradingView.com
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