Friend.tech stirs controversy as FRIEND token goes live

• Friend.tech v2 launch has caused concerns among crypto users as FRIEND token drops almost 98%.
• Crypto community airs their displeasure with the sudden drop in price after a whale dump.
• Since the airdrop went live, the web3 social media platform has raked in over $1.3 million in fees.

Read more: Friend.tech set to introduce non-transferable token following Eigen's footsteps

After Friend.tech version 2 launch on Friday, its newly launched FRIEND token crashed significantly, inviting criticism from several users. Users also complained about poor functionality in its Club feature.

FRIEND token tanks after launch

The launch of Friend.tech v2 has stirred concerns among crypto users, as the FRIEND token price dropped almost 98% a few hours after it went live on Friday, according to data from CoinGecko.

The fall in FRIEND's price came after the largest whale sold all of its tokens right after the launch, causing the price to dip about 50% initially before a further plunge. Several users complained of an API failure that prevented them from claiming their tokens while the price dipped before their eyes.

A few weeks before its launch, most crypto community members anticipated Friend.tech v2 launch to bring innovative features to the crypto ecosystem. However hours prior to its launch, the web3 social platform faced a huge backlash after a leaked smart contract speculated that the airdrop was non-transferable.

Also read: Friend.tech V2 release and speculation over potential airdrop pushes TVL above $40 million

The crypto community has continued to share displeased comments on the price drop. X user Bera posted:

"I've lost all faith in the cryptocurrency space after the Friend Tech launch. $FRIEND was supposed to unite us as friends, traders, speculators, and investors."

Another user posted

Many investors also raised concerns about the Friend.tech app functionality amid the launch. Users have complained about the app not working properly due to a poor interface.

Its Clubs feature also received fierce criticism from users. On the bright side, many have praised it as one of the first crypto projects recently to launch fairly, with all tokens airdropped directly to the community. However, Ethereum investor @eric.eth noted the impressive amount of fees it has raked in through its 1.5% swap fee.

Read more: SocialFi tokens rally as crypto influencers bring back Friend.tech

Friend.tech initially launched in August last year on the Ethereum Layer 2 Base chain, attracting thousands of users before experiencing a decline.