Crypto currency market experienced a shocking drop today. Friend.Tech’s new version 2.0 introduces the local token FRIEND, featuring a series of innovative aspects including the Money Club. According to DEXscreener, the price of the FRIEND token surged to $169 shortly after starting to trade on Base, but quickly fell to $2.5.
What Caused the Drop in Altcoin?
Crypto analysis platform DYOR’s founder Hitesh Malviya stated, “It seems that the price drop occurred in a similar manner to the liquidity issues that happened last week in Renzo,” he said. Liquidity refers to the market’s capacity to meet large buy and sell orders. In a low liquidity environment, a few large orders can significantly affect the market price.
Launched last August, Friend.Tech has drawn attention as a unique platform with a points system that rewards user participation. Operating on Coinbase‘s Ethereum-based Layer-2 Blockchain, this platform offers a structure aimed at invited users. The new Money Club feature is designed to facilitate financial discussions and networking. Additionally, a new points system is being introduced.
Increased Activity on the Platform
According to DeFiLlama, at the time of writing, $29.8 million worth of crypto assets were locked on Friend.Tech, which was more than 40% of the peak at the beginning of October. However, activities on the platform significantly increased last month due to the anticipated version 2 launch originally planned for April 20, as well as the FRIEND token airdrop expectation.
Last week, a snapshot was taken for the eagerly awaited 100% FRIEND token airdrop. However, some users reported issues in claiming their airdrops. Crypto analyst and trader Reetika Malik stated on X, “I’m not selling my FRIEND airdrop because I can’t even claim it.”
Malviya also commented on this issue, noting that most users received 10 times less airdrop than expected. Malviya pointed out that a few might have made significant gains, but the rest could be dissatisfied with the airdrop due to the falling prices. According to him, disappointment is quite normal.
