Friend.tech v2 Airdrop Introduces Non-Transferable Tokens

Friend.tech, a decentralized social media platform, is gearing up for the launch of its version two and accompanying airdrop on May 3. However, leaked details from smart contracts hint at potentially controversial features, notably the inclusion of a non-transferable token.

According to insights from pseudonymous decentralized finance (DeFi) researcher CBBOFE, who claims to have uncovered the smart contracts, the upcoming Friend.tech v2 airdrop may introduce a non-transferable token labeled $POINT. This token, as per the leaked information, won't be tradable except for specific whitelisted addresses and will find a trading platform on BunnySwap, the native DEX.

A non-transferable token model implies that recipients of the airdrop won't have the freedom to sell or exchange the coins, except for designated whitelisted protocol addresses.

EigenLayer, a leading restaking protocol, recently stirred controversy by adopting a similar non-transferable token approach for its EIGEN airdrop.

The decision to opt for non-transferable tokens stems from Friend.tech's strategy to impose a 1.5% fee on transactions involving the token. Kasper Vandeloock, a quantitative crypto trader and advisor at X10 exchange, shed light on this, suggesting that restricting transfers essentially compels users to sell through the platform, consequently incurring the 1.5% fee. Vandeloock noted the irony in this approach, given Friend.tech's anti-VC stance juxtaposed with its profit-generation tactics.

The proposed token, POINTS, is intended to serve as a utility token, facilitating the creation of social clubs on the platform, each incurring a 1.5% platform fee, as detailed by CBBOFE. Furthermore, these tokens will be used as rewards for users staking their Ether (ETH) and Points tokens within the Friend.tech smart contract ecosystem.

While the introduction of non-transferable tokens has sparked concerns among crypto enthusiasts, it's worth noting that such tokens could alleviate the immediate selling pressure associated with airdrops, potentially contributing to more stable long-term token prices.

The crypto community has seen instances where airdropped tokens experienced significant declines shortly after distribution. For instance, The Omni Network's OMNI token plummeted by 55% within 18 hours post-airdrop, while Wormhole's token (W) lost nearly 25% of its value shortly after a similar event in April. Such downturns underscore the risks associated with traditional airdrops, often targeted by professional airdrop hunters seeking short-term gains.

Nonetheless, while the adoption of non-transferable tokens may mitigate these immediate post-airdrop sell-offs, it remains to be seen how the broader crypto community will respond to this approach in the long run.

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