FriendTech's token price plunges over 90% after launch

FriendTech’s native Friend token has dropped sharply from its brief peak at $169 to now trading at around $1.6, marking a fall of over 99%, according to DexScreener .

The native token of the web3 social media platform currently has almost 18,000 holders and a circulating supply of about 14.5 million .

Most of the selling took place while several users said on X that they were still unable to claim the airdrop. "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," crypto investor Luke Martin posted.

Others have speculated that the price dump may have been driven by liquidity issues. Liquidity refers to the market’s capacity to handle significant buy and sell orders at stable prices. In low liquidity environments, a few large orders can swing market prices disproportionately.

Friend token price chart. Source: DexScreener

"This has to be a joke, friendtech only added $0.01 in liquidity, so first you milk your users with fees, then u get them to add liquidity so that they can dump on each other top class team here," crypto trader mcSleuth posted . While the token may have had low liquidity at the start, DexScreener shows its current liquidity stands at north of $4 million.

Earlier today, the token was opened for trading on FriendTech’s own DEX offering via Bunny Swap that’s accessible via the app.

FriendTech's token airdrop

On Friday, decentralized social platform FriendTech airdropped its native token while unveiling version 2 of the platform.

Version 2 features 'Clubs,' which are community spaces owned and operated by key holders. The keys to the Clubs will be transacted in Friend tokens, with a 1.5% fee to every transaction that goes to liquidity providers on its DEX.

FriendTech made its debut in August of last year on Coinbase's Ethereum Layer 2 blockchain Base as an invite-only networking service that leverages social tokens called “Keys” that give users access to exclusive chats and content from creators.

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