Friend Tech. Unfriendly Airdrop Ⓜ️
Whale dumps tokens as users struggle to claim 100% community airdrop. Edward Snowden issues warning on bitcoin privacy. Grayscale's ETF records first inflow - $63 million. FTX luxury fallout.
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Remember Friend.Tech?
The SocialFi star of last year. Then faded through time.
Read: Who is a friend? 🫂
Now it's back in the news trying to make a comeback.
Recapture the market attention.
So what do they do? The platform launched version 2 (V2) with new features like the Money Club, aiming to enhance user engagement and regain its competitive edge in the decentralised social media space.
How does it go? Not so well. Disaster, actually.
The platform airdropped its native FRIEND token to early users on the platform, distributing 13,349,967 tokens.
The token initially traded as high as $169 shortly after launch as users rushed to buy the new token, followed by a sharp decline to $3.26. Subsequently, the token's value plummeted further to $1.32 due to concerns about liquidity issues.
What happened? The big price drop was triggered by the largest recipient of the airdrop liquidating their entire token holdings just a few hours after receiving them. This caused concerns about liquidity issues, as a small number of large transactions were able to disproportionately influence the market price.
Despite these challenges: Friend.Tech remains the 9th largest protocol on the Base network with a total value locked of around $28 million.
Community in Uproar
Friend.Tech TLDR:
Decentralised Social Media: Give users more control over their data compared to traditional platforms.
Monetize Your Influence: Creators can connect with their audience through a system called "Keys."
Keys = Tokenized Attention: Tokens representing a creator's influence. Users can acquire Keys to gain access to exclusive content, private chats, or other perks offered by the creator.
Built on Base: Blockchain network by Coinbase, for its functionalities.
Web3 Integration: Web3 for a new way for creators to monetize their online presence.
Read: Friend or Foe? 🎭
Block That Quote 🎙️
Edward Snowden, the CIA whistleblower
"This is the final warning. The clock is ticking."
Snowden stated on Twitter that he has been urging Bitcoin developers for a decade to incorporate privacy at the protocol level, and emphasised the urgency of the situation.
His tweet was a response to a message from Wasabi Wallet, a cryptocurrency privacy project that has stopped offering its services to users in the United States.
A similar decision was taken by Trezor, manufacturer of crypto hardware wallets, to discontinue its CoinJoin function, which was used to improve transaction anonymity.
Snowden, former CIA employee who leaked classified information and is now living in exile, and has been a big Bitcoin supporter.
28M More EIGEN After Airdrop Backlash
EigenLayer, an Ethereum restaking protocol.
They announced that they will be airdropping around 28 million additional EIGEN tokens to over 280,000 wallets.
Additional airdrop will include those who participated in the initial airdrop.
Season 1 claimants will receive a minimum of 110 EIGEN tokens, while Season 2 claimants will get at least 100 EIGEN.
Why? The community backlash
EigenLayer's initial airdrop announcement, which faced backlash from some users who deemed the airdrop program's provisions as restrictive.
The initial airdrop, EigenLayer said users could claim their tokens from May 10 but would be prevented from transferring or selling them until an undisclosed date.
EigenLayer stated it would look to include more of its testnet users that may have been omitted from the initial airdrop in a future Phase 2.
In the Numbers 🔢
$63 million
Grayscale's Bitcoin ETF records first Inflow, after 80 days of outflows and losing over $17 billion in outflows.
ETF's closed a tough week on a positive mode on May 3 with total inflow of $378 million. The first net inflow after net outflows in the past seven days, Coinglass data.
Titanic Splurge, Bahamas Surrender & Big Sale
FTX fallout never fails to surprise us, even in the aftermath of the ceasing drama. This time it's about the top executives and their big splurge.
Patrick Gruhn, the former head of FTX Europe
Despite ties to Sam Bankman-Fried, Gruhn avoided a lawsuit over FTX Europe's purchase.
Purchased a historic Titanic pocket watch for $1.5 million. He told the Wall Street Journal that he bought the watch as a gift for his wife, and he plans to exhibit the watch and sees it as a symbol of resilience.
The gold watch found on the corpse of a victim of the Titanic, originally belonged to John Jacob Astor, an American business magnate considered to be the richest passenger on the doomed 1912 transatlantic voyage.
Ryan Salame, former co-chief executive of FTX Digital Markets
He pleaded guilty at the court on September 7, 2023, .and released him on a $1 million bond with the support of two co-signers. Sentencing set for May 28, 2024.
Agreed to give up his $5.9 million Bahamas property, as part of his restitution for pleading guilty to fraud and conspiracy charges.
FTX Estate Sells Solana Tokens
The estate aims to use the proceeds to initiate repayments by late 2024.
FTX estate is selling Solana tokens in tranches, priced between $85 and $110 each. Despite the discount, demand is high with participation from major firms.
The Surfer 🏄
Jack Dorsey donated $21 million to OpenSats to support open source and Bitcoin development, reports Bitcoin Magazine. This comes after a previous $10 million donation from Dorsey in May 2023.
Investors are seeking recourse after a crypto gambling platform called ZKasino vanished with $30 million in user deposits. Dutch authorities arrested a 26-year-old man in connection with the scam.
The US SEC has extended its review period on a rule change that would allow the listing of 7RCC's Spot Bitcoin and Carbon Credit Futures ETF to June 24. The fund is designed to expose investors to Bitcoin alongside carbon credits, mitigating the digital asset's carbon footprint.
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