As an experienced financial analyst, I have seen my fair share of cryptocurrency projects and their token models. The news that Friend.tech’s version two launch might include a non-transferable token is a concerning development in my opinion.
As a neutral analyst, I’ve come across some intriguing information regarding the upcoming version two launch and airdrop of Friend.tech, the decentralized social media platform, set for May 3. However, a leaked smart contract has raised some eyebrows due to its potentially contentious elements. Among these features is a non-transferable token – meaning users cannot transfer or sell these tokens to others. This could have significant implications for the platform’s user base and overall functioning, which I will be closely monitoring as more details emerge.
According to the anonymous DeFi expert CBBOFE, who claims to have discovered the Friend.tech v2 smart contracts through a recent X Post in May, these contracts might incorporate a non-transferable token as part of an airdrop.
“Ticker is $POINT, not transferable unless to some whitelisted addresses. $POINT will be tradable on BunnySwap (FT native DEX).”
The distributed tokens obtained through an airdrop are not interchangeable; therefore, the intended beneficiaries cannot trade or swap these coins with others, unless specifically authorized by pre-designated exchange platforms or protocols.
EigenLayer’s restaking protocol has announced that it will distribute non-transferable tokens as part of the EIGEN airdrop. This decision has sparked controversy recently.
As a researcher, I’ve come across an interesting development with Friend.tech. They have made their tokens non-transferable in order to collect a 1.5% fee from users, as per the information shared by Kasper Vandeloock, who is a quantitative crypto trader and advisor at X10 exchange. He disclosed this detail during his conversation with CryptoMoon.
“If you can’t transfer it, you are forced to sell it through them, which has the 1.5% fee… Which is kind of ironic, they bring this strong ‘we are anti-VC’ vibe to the table while being a profit factory for Paradigm.)”
As a token analyst, I would explain that the newly proposed token, POINTS, serves a functional role within the platform. Specifically, it enables users to establish social clubs, incurring a platform fee of 1.5%.
“New smart-contract called Clubs. Anyone can create multiple clubs and a bonding curve among several options. 1.5% platform fee and 1.5% staking contract. Club keys are bought with $POINT.”
As a token analyst, I would explain it this way: I’ll be rewarding new tokens to users who lock up their Ether (ETH) and Points tokens within the Friend.tech smart contract through staking.
The announcement caused concerns among crypto enthusiasts. Pseudonymous crypto trader MK commented:
“I hate Eigen so much for starting this non-transferrable meta.”
Non-transferable tokens could reduce initial airdrop selling pressure
Instead of “While non-transferable tokens have been causing significant community outrage, they could benefit the long-term price action of the cryptocurrency,” you could say:
In the final days of April, The Omni Network’s OMNI token experienced a significant drop, shedding approximately 55% of its value within just 18 hours after the airdrop event. This decline resulted in a substantial reduction of over half its market capitalization.
As a crypto investor, I’ve observed that Wormhole’s token (W) experienced a significant price drop shortly following its airdrop on April 3. The value decreased by almost 25% within just a few hours. Since then, the token has seen a decline of over 47%, based on data from CoinMarketCap.
As a crypto investor, I’ve come across the issue of airdrops being exploited by professional hunters or squatters. These individuals create numerous wallets to farm the same airdrop repeatedly with no intention of engaging with the underlying protocol in the long term. Instead, they sell their rewards on the market right after claiming them.
In March 2023, it came to light that individuals who had participated in the Arbitrum (ARB) airdrop amassed a total of $3.3 million in tokens from 1,496 different wallets into merely two wallets they owned.
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2024-05-02 14:51