Crypto Investor Loses $16 Million Amid Friend.tech’s Controversy And Token Crash

Crypto societal media level Friend.tech faced backlash aft a arguable determination by its team. The platform’s autochthonal token, FRIEND, plummeted implicit 42%, reaching its all-time debased (ATL) terms amid the controversy. As a result, an Ethereum (ETH) whale saw its concern successful the token driblet by implicit 95%.

Friend.tech Loses Investors’ Trust

Over the weekend, crypto level Friend.tech announced its determination to resign power implicit its astute contracts to debar aboriginal changes. Friends.tech is simply a Social Finance (SocialFi) level launched successful 2023 that combines the principles of societal media and Decentralized Finance (DeFi).

The task is simply a blockchain-based societal level built connected Ethereum’s Layer-2 Base, offering users the imaginable to nett from contented creation. The crypto level allows creators to monetize their contented by utilizing tradeable tokenized shares, known arsenic “Keys,” to entree their exclusive publications and backstage chats.

On September 7, Friend.tech’s squad revealed it had sent the admin and ownership of its astute contracts to Ethereum’s null code “to forestall immoderate changes to their fees oregon functionality successful the future.”

Per the post, the alteration won’t impact the “separate web lawsuit operated astatine friend.tech which volition proceed arsenic is.” Additionally, fees from the astute contracts oregon the level are not going to the developer team’s multisig.

Following the news, the project’s assemblage shared their discontent, expressing their disbelief astir the decision. A assemblage subordinate called the team’s caller actions “The champion show of WORST LEADERSHIP ever successful crypto history.”

Meanwhile, others questioned whether the determination was “the last nails successful the coffin, oregon ribbons connected a present?” Investor’s uncertainty was founded successful May erstwhile the project’s airdrop presented respective issues.

However, distrust was cemented erstwhile the level announced it would physique its blockchain, “Friendchain,” successful June. After the backlash, Friend.tech announced it had abandoned the task successful a now-deleted post. This determination dragged its token’s terms down by implicit 35% successful July.

Ethereum (ETH) is trading astatine $2,311 successful the three-day chart. Source: ETHUSDT connected TradingView

Crypto Whale Investment Drops 94%

Since the quality dropped, FRIEND’s terms decreased by 42%. The cryptocurrency plummeted from the $0.102 people to the $0.0593 level implicit the weekend. On Monday morning, the clang drove the token’s terms to its ATL of $0.0574, astir a 98% driblet from its all-time precocious (ATH) of $3.26.

As the token deed its lowest price, a crypto capitalist saw its concern nosedive implicit 95%. Blockchain probe level Spotonchain revealed that a whale had mislaid implicit $15 cardinal connected its FRIEND holdings.

Per the report, Taiwanese property Machi Big Brother was a “hard-core bull” connected the platform’s token. The whale was astatine astir $16 cardinal successful realized and unrealized losses aft spending astir $18 cardinal worthy of ETH to get FRIEND tokens.

Machi bought 15.99 cardinal FRIEND tokens betwixt May 9 and August 13 astatine an mean terms of $1.125. The trader besides accumulated FRIEND by providing liquidity connected BunnySwap during this period.

Whale sees implicit $15 cardinal successful losses. Source: Spotonchain

As the token’s worth declined implicit the months, the capitalist sold astir 5.26 cardinal tokens to chopped loss. At the time, the merchantability was worthy $2.27 cardinal astatine an mean token terms of $0.431, representing a 61.7% realized loss.

Machi’s remaining 11.1 cardinal FRIEND tokens had a 94.5% unrealized loss, worthy $11.4 million. At the clip of the report, the whale’s holdings were worthy astir $689,000.

The cryptocurrency has recovered 32% from its ATL, concisely hitting the $0.09 people earlier today, according to Coingecko data. As of this writing, FRIEND is trading astatine $0.0761, a 2.1% surge successful the past 24 hours.

Featured Image from Unsplash.com, Chart from TradingView.com