The cryptocurrency market witnessed a dramatic decline today. Friend.Tech has unveiled its new version 2.0, which introduces the local token FRIEND, along with several innovative features, including the Money Club. According to DEXscreener, the price of the FRIEND token initially soared to $169 on Base, but swiftly plummeted to $2.5.
What Caused the Decline in Altcoin?
There are several factors that contributed to the drop in altcoin. Hitesh Malviya, the founder of crypto analysis platform DYOR, stated, “It appears that the price drop occurred in a similar fashion to the liquidity issues experienced last week in Renzo.” Liquidity refers to the market’s ability to handle large buy and sell orders. In a low liquidity environment, a few substantial orders can have a significant impact on the market price.
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Friend.Tech, which was launched in August, has garnered attention as a distinctive platform that rewards user participation through a points system. Operating on Coinbase’s Ethereum-based Layer-2 Blockchain, this platform is designed for invited users. The newly introduced Money Club feature aims to facilitate financial discussions and networking. Additionally, a new points system is being implemented.
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 accounted for more than 40% of the peak value at the start of October. However, activities on the platform experienced a significant surge last month due to the highly anticipated version 2 launch, originally scheduled for April 20, as well as the expectation of the FRIEND token airdrop.
Last week, a snapshot was taken for the eagerly awaited 100% FRIEND token airdrop. However, some users encountered difficulties in claiming their airdrops. Crypto analyst and trader Reetika Malik stated on X, “I’m holding onto my FRIEND airdrop because I haven’t been able to claim it yet.”
Malviya also addressed this issue, noting that most users received only 10% of the expected airdrop. While a few may have made significant gains, the majority might be dissatisfied with the airdrop due to the falling prices. According to him, disappointment is a common sentiment in such situations.
Disclaimer: The information provided in this article should not be considered investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry inherent risks, and should conduct their own research.
