Friend.tech Loses Investors' Trust After Resigning Control of Smart Contracts to Avoid Future Changes

The platform's native token, FRIEND, plummeted over 42%, reaching its all-time low (ATL) price amid the controversy. As a result, an Ethereum (ETH) whale saw its investment in the token drop by over 95%.

Crypto social media platform Friend.tech faced backlash after a decision by its team sparked controversy. As a result, the platform’s native token, FRIEND, plummeted over 42%, reaching its all-time low (ATL) price amid the controversy. An Ethereum (ETH) whale saw its investment in the token drop by over 95%.

FRIEND’s price decreased by 42% after the news. The cryptocurrency fell from the $0.102 mark to the $0.0593 level over the weekend. On Monday morning, the crash drove the token’s price to its ATL of $0.0574, nearly a 98% drop from its all-time high (ATH) of $3.26.

As the token hit its lowest price, a crypto investor saw its investment nosedive over 95%. According to blockchain research platform Spotonchain, an ETH whale lost over $15 million on its FRIEND holdings.

Machi Big Brother, a well-known personality in Taiwan, was heavily invested in the platform’s token. The whale was at nearly $16 million in realized and unrealized losses after spending around $18 million worth of ETH to acquire FRIEND tokens.

Machi bought 15.99 million FRIEND tokens between May 9 and August 13 at an average price of $1.125. The trader also accumulated FRIEND by providing liquidity on BunnySwap during this period.

As the token’s value declined over the months, the investor sold around 5.26 million tokens to cut loss. At the time, the sale was valued at $2.27 million with an average token price of $0.431, representing a 61.7% realized loss.

Machi’s remaining 11.1 million FRIEND tokens had a 94.5% unrealized loss, amounting to $11.4 million. Based on the report, the whale’s holdings were valued at around $689,000 at the time.

The cryptocurrency has recovered 32% from its ATL, briefly hitting the $0.09 mark earlier today, as per Coingecko data. At press time, FRIEND is trading at $0.0761, up by 2.1% in the last 24 hours.