The concerns surrounding the price action of the Friend.tech token have heightened after the largest recipient of the airdrop sold all their tokens shortly after receiving them. Blockchain data shows that the whale known as “Murphys1d” sold over 55,000 Friend tokens just hours after the airdrop went live on May 3.
In addition to this sell-off, some users, including crypto investor Luke Martin, were unable to claim their airdrop tokens. Martin noted that the whale wallet appears to be connected to a fake account with no activity, allowing it to easily accumulate over 500,000 Friend.tech points without any risks.
Since its launch, the new Friend.tech (FRIEND) token has experienced a significant decline in value. It has fallen by over 52.5%, dropping from $3.26 to just $1.32 as of 9:50 am UTC. According to CoinGecko data, the token’s price fell by more than 32% in the last hour prior to publication.
While the actions of the largest Friend.tech whale may have a short-term impact on the market, Anndy Lian, an intergovernmental blockchain expert and author, believes that it does not necessarily determine the token’s long-term trajectory. Lian emphasizes that the value of the token will largely depend on the community’s trust in Friend.tech and how the team handles the current situation.
The mysterious Friend.tech whale is an example of a professional airdrop farmer who solely participates in emerging protocols for the purpose of receiving airdrop rewards. These farmers often have multiple wallets to maximize their rewards and tend to market sell all the tokens they receive. This creates significant sell pressure and leads to panic selling by legitimate users of the protocol.
This issue was evident in the case of the Omni Network’s OMNI token, which fell by 55% in less than 18 hours following its airdrop. The token lost over half of its market capitalization as a result.
In a similar incident in March 2023, airdrop hunters consolidated $3.3 million worth of tokens from Arbitrum’s ARB airdrop into just two wallets that they controlled, highlighting the exploitative nature of these farmers.
Overall, while the actions of airdrop farmers can disrupt the market in the short term, the long-term value of a token depends on factors such as community trust and effective management of the situation by the project team.