A disclosed smart contract indicates that version two of the decentralized social media platform Friend.tech, which is preparing for its May 3 launch and airdrop, may contain controversial features, such as a non-transferable token.
A non-transferable token may be included in the airdrop of the Friend.tech v2 smart contracts, according to a May 2 X post citing pseudonymous decentralized finance (DeFi) researcher CBBOFE, who claims to have potentially discovered the smart contracts.
“Ticker is $POINT, not transferable unless to some whitelisted addresses. $POINT will be tradable on BunnySwap (FT native DEX).”
A non-transferable token restricts the ability of airdrop recipients, with the exception of specific whitelisted protocol addresses, to sell or exchange the currencies.
The most effective restacking protocol, EigenLayer, has also made the decision to distribute an EIGEN airdrop token that cannot be transferred, which was a significant factor in the recent backlash against the company.
In order to compel users to pay the 1.5% fee, Friend.tech rendered the token non-transferable, according to Kasper Vandeloock, quantitative crypto trader and advisor at X10 exchange.
“If you can’t transfer it, you are forced to sell it through them, which has the 1.5% fee… Which is kind of ironic, they bring this strong ‘we are anti-VC’ vibe to the table while being a profit factory for Paradigm.”
According to CBBFOE, the potential utility token of the future, POINTS, will enable the formation of social organizations on the platform for a possible platform fee of 1.5%:
“New smart-contract called Clubs. Anyone can create multiple clubs and a bonding curve among several options. 1.5% platform fee and 1.5% staking contract. Club keys are bought with $POINT.”
As an additional incentive, users who stake their Ether and Points tokens in the Friend.tech smart contract will be granted the new tokens.
Amid apprehension, crypto enthusiasts reacted against the announcement. MK, an anonymous cryptocurrency speculator, remarked:
“I hate Eigen so much for starting this non-transferrable meta.”
Although non-transferable tokens have generated considerable discontent within the community, they may prove advantageous for the cryptocurrency’s long-term price movement, given that tokens typically experience substantial depreciation after airdrops.
In less than eighteen hours after the airdrop, The Omni Network’s OMNI token dropped 55% at the end of April, losing more than half of its market capitalization.
Another example is Wormhole’s token (W), which lost nearly 25% of its value in less than two hours following an airdrop on April 3. Since the airdrop, the token has declined by more than 47%, per CoinMarketCap.
