Crypto influencer Machi Big Brother has reportedly suffered a massive financial loss of approximately $16 million after investing in FriendTech’s native token, FRIEND.
According to Lookonchain, Machi spent around 5.2K ETH ($16.7 million) to purchase 11.1 million FRIEND tokens. However, the token’s value plummeted, leaving his investment worth just $0.7 million.
Major Decline of the $FRIEND Token
There has been a significant decrease in the value of FRIEND along with this noteworthy loss. The native coin of the decentralised social network platform FriendTech had a sharp 30% decline in value on Monday.
The effort to transfer ownership of the project’s smart contracts, which increased market turbulence and set off a negative trend, was blamed for the decrease.
The FriendTech team allayed community fears by assuring them that the platform’s web client, which runs under the domain “friend.tech,” is unaffected by this change of ownership. They made it clear that the developer team’s multi-sig wallet is not receiving any fees from the web domain or the smart contracts.
FriendTech made its debut and in just four days, the company had a $233.6 million market capitalisation. Nevertheless, this amount has already drastically decreased, with the token’s market capitalisation falling to barely $1.04 million.
The total value locked (TVL) on FriendTech has also experienced a significant decrease, according to statistics from DefiLlama, dropping from its peak of $52 million in early October 2023 to less than $3.5 million.
What is the Future of FRIEND Token?
Friend.tech is a native Ethereum layer-2 Base application that enables content producers to charge for their works in exchange for tokenised shares, or “keys.” The precipitous decline of FRIEND underscores the erratic character of the Web3 ecosystem, wherein abrupt developments and market sentiment can cause sharp fluctuations in token values.
The significant loss suffered by Machi Big Brother highlights even more the dangers associated with the quickly developing decentralised money and social network systems.
The market will be closely observing FriendTech’s next moves to stabilise and win back investor confidence as the community deals with the fallout from its recent contract revisions and the token’s market difficulties.