Biggest Friend.tech whale dumps tokens as users struggle to claim airdrop

As a seasoned crypto investor with several years of experience under my belt, I’m always on the lookout for promising new projects and opportunities. However, the recent Friend.tech airdrop has left me feeling uneasy. The sudden sell-off by the largest whale, “Murphys1d,” just hours after the airdrop went live, has caused significant price volatility and concern among investors.

As an analyst, I’ve noticed an intriguing turn of events regarding the largest recipient of the Friend.tech airdrop. This individual swiftly sold off all their acquired tokens merely hours after the distribution. Such a quick sale raises some red flags about the potential price movement of the token.

Within hours of the Friend.tech airdrop launching on May 3rd, the biggest investor, referred to as “Murphys1d,” dumped approximately 55,000 freshly minted Friend tokens onto the market, according to blockchain records.

After the drop in price following the sale, some individuals encountered difficulties in receiving their airdrops. For instance, Luke Martin, a cryptocurrency investor, expressed his frustration in a May 3 Reddit post.

“Watching the value of my airdrop go from 7 figures to 5 figures in the span of 2 hours while I keep refreshing the page trying to claim….still can’t claim. Adds insult to injury.”

Martin mentioned that the wallet associated with the whale appears to be connected to a phony X account showing no signs of activity, allowing it to amass approximately 500,000 Friend.tech points without any risk.

The value of the newly introduced FRIEND token from Friend.tech has plummeted by approximately 52.5% since its introduction, dropping from an initial price of $3.26 to a current price of $1.32 as of 9:50 am UTC. Over the past hour alone, there has been a significant decline of around 32% based on data from CoinGecko.

Biggest Friend.tech whale dumps tokens as users struggle to claim airdrop

The significant sale of Friend.tech tokens by the largest whale might influence the market in the immediate future. However, Anndy Lian, a renowned intergovernmental blockchain expert and author of “NFT: From Zero to Hero,” asserts that this event does not definitively determine a token’s long-term direction. (CryptoMoon)

“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.”

Lian pointed out that the value of the token primarily depends on the community’s faith in Friend.tech and how effectively the team handles the current circumstances.

Airdrop farmers continue to plague token launches

The enigmatic Friend.tech whale is yet another instance of an expert airdrop farmer (squatter), who engages solely with up-and-coming protocols in search of airdrop incentives. With multiple wallets at their disposal, they amplify their rewards for maximum gain.

As a crypto investor, I’ve noticed that one challenge with participating in airdrops is the tendency for recipients to immediately sell their newly acquired tokens upon receiving them. This mass selling puts immense downward pressure on the token price, which can trigger even more panic selling among legitimate users of the protocol.

At the close of April, the value of Omni Network’s OMNI token plummeted by 55% within an 18-hour span after its distribution, resulting in a significant loss of more than half its total market worth.

In March 2023, it came to light that individuals who participated in the Arbitrum airdrop, specifically those aiming to acquire tokens through airdrops (known as “airdrop hunters”), amassed a total of $3.3 million in ARB tokens from approximately 1,496 wallets into only two wallets they held the private keys to.

2024-05-03 13:30

Airdrop farmers continue to plague token launches

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