Friend.tech Native Token Tanks 50% After Biggest Whale Dumps

Buddy.tech native token $FRIEND fell 50% on Might 3 after its debut as the most important whale dumped their holdings. In the meantime, customers couldn’t entry their airdropped tokens.

As BaseScan knowledge exhibits, inside hours of the airdrop, the most important holder, “Murphys1d,” bought over 55,000 of the newly issued $FRIEND.

This led to an instantaneous 53.3% drop within the token’s worth from $3.26 to $1.30 as of writing.

Buddy.tech Neighborhood Unable to Entry Airdrop

Past the sell-off, some customers have been unable to assert their airdrop, forcing them to observe helplessly as $FRIEND’s worth plummeted. Crypto investor Luke Martin commented that this simply “provides insult to damage.”

Watching the worth of my airdrop go from 7 figs to five figs within the span of 2hrs whereas I preserve refreshing the web page making an attempt to assert….nonetheless cannot declare.

In the meantime I gotta watch this man cashout whereas my pockets will not even load.

Provides insult to damage 💀💀💀

— Luke Martin (@VentureCoinist) May 3, 2024

In a low liquidity setting, a number of giant orders can have an outsized influence in the marketplace worth.

$FRIEND solely had $0.01 price of liquidity, leaving holders weak.

The extraordinarily low liquidity evoked outrage throughout the group.

“First you milk your customers with charges, you then get them so as to add liquidity in order that they will dump on one another,” disgruntled X user mcSleuth commented.

Airdrop Farmers Proceed to Plague Token Launches

The Buddy.tech dump is only one instance of an expert airdrop farmer dumping on markets. These “squatters” work together with rising protocols solely for the airdrop rewards, usually with a number of wallets to compound rewards.

This comes at a heavy price to the communities surrounding the protocol squatters’ targets. Dumps create main promoting stress, inflicting respectable protocol customers to panic and promote their holdings as properly, additional compounding the problem.

In April 2024, Omni Community was equally affected by Sybil farmers. Their native OMNI token fell 55% in lower than 18 hours following its airdrop, dropping over half of its market capitalization.

Whereas these occasions can have an enormous unfavorable influence on worth motion, it’s usually solely short-term. $FRIEND could wrestle following this occasion, however its group of buyers could pull it by means of in the long run.