Top Whale Sells Tokens as Users Face Airdrop Issues

The largest whale's sell-off led to a 52.5% drop in the new token's value, causing concerns about price volatility.

May 4, 2024 - 16:56
May 4, 2024 - 10:41
Top Whale Sells Tokens as Users Face Airdrop Issues
Reading time - 2 min

The largest whale has offloaded all his holdings, causing the new token's value to plummet by over 50%, while other users struggle to claim the airdrop. The biggest beneficiary of the airdrop sold off his tokens just hours after the distribution, raising concerns about the token's price volatility.

On May 3, shortly after the airdrop was activated, the top whale known as "Murphys1d" liquidated over 55,000 Friend tokens, according to blockchain data. In addition to the sell-off, some users faced issues claiming their airdrop, including crypto investor Luke Martin, who noted the difficulty in a May 3 X post.

Martin also mentioned that the whale wallet is likely linked to a fake X account with no activity, allowing it to farm over 500,000 points without any risk. The new (FRIEND) token has fallen by over 52.5% since its launch, dropping from $3.26 to $1.32 as of 9:50 am UTC. CoinGecko data shows a 32% decline within the last hour.

According to intergovernmental blockchain expert Anndy Lian, author of "NFT: From Zero to Hero," the largest whale's sale might lead to short-term market changes, but it doesn't define the token's long-term trajectory.

"While it might cause a short-term dip in price due to increased supply and potential panic selling, it doesn’t always mean a long-term downtrend. To me, it is a good thing… The sell-off would mean a more decentralized distribution of tokens. A broader distribution reduces the risk of a single entity having excessive control over the project.” said Lian.

However, Lian emphasized that the token's value largely depends on the community's trust in and the team's ability to handle the current situation.