Hayden Adams, founder of the Uniswap protocol, has shared his opinion on what characterizes a good distribution or rollout of a token. In a recent post on the X platform, the prominent crypto figure listed 10 qualities of good token distributions, highlighting the complexities surrounding the launch of a cryptocurrency. Uniswap Founder Gives Opinion On Good Token Distributions Adams began his take on good token distributions by stating that projects should allocate “tokens, not points” to the community. This phrase implies that participants should receive actual tokens that hold value within a particular ecosystem or on a network, instead of receiving points that may have limited utility. Secondly, Adams warned against creating ambiguity or being vague about a token distribution to increase the number of participants or to “farm the farmers.” A good token distribution practice includes sharing real details when ready, according to the Uniswap founder. Related Reading: Crypto Expert Arthur Hayes Says Bitcoin Has Found Its Local Bottom – But Can It Hold This Level? Additionally, Adams criticized “low float tokens,” while calling them malicious. The prominent DeFi figure urged project teams to ensure sufficient tokens are available in circulation to prevent manipulation and allow genuine price discovery. Adams also discouraged hyping a token’s price and how it will skyrocket before it launches. The founder believes hiring an influencer or a marketing company to promote a token’s value only depicts a get-rich-quick scheme rather than a genuine attempt at building real value. What’s more, the Uniswap founder stressed the importance of free token airdrops during token distributions. “Don’t be stingy – give a significant amount away. If you don’t think the community deserves a significant amount, don’t release a token,” Adams said in his post. Ultimately, Adams advised new crypto projects to be careful and thoughtful in their decision-making to avoid making mistakes that might put them at odds with the crypto community. “Create something you’re proud of and stand behind it,” the Uniswap founder added. A Jab At Friend.tech and its FRIEND? At the beginning of his post, the Uniswap founder clearly stated that the opinion is not aimed at any specific project. However, the timing is interesting, especially after social media platform Friend.tech’s “unsuccessful” token airdrop. Related Reading: Injective (INJ) Price In Danger If It Falls To Crucial Support Level: Analyst On Friday, May 3rd, Friend.tech airdropped its new FRIEND tokens to users in conjunction with the launch of the protocol’s version 2. While the token’s value quickly rose to $167 after launch, FRIEND’s price nosedived to below $2 within a few hours. Analysts pinpointed liquidity issues and a mass sell-off as the primary reasons behind the downturn of FRIEND and, ultimately, the ineffectual token launch. Moreover, many users complained about how challenging it was to claim the token airdrop, as technical drawbacks reportedly frustrated the process. UNI price stalls at $7.5 on the daily timeframe | Source: UNIUSDT chart on TradingView Featured image from Shutterstock, chart from TradingView
The decentralized social network Friend.tech, launched in August 2023, is facing a significant setback as its native token, FRIEND, experiences a staggering 98.5% drop in value. Investors who participated in the recent airdrop of FRIEND tokens have expressed serious concerns about the development, highlighting issues with token claiming and app functionality. Investors Hit Hard As FRIEND Token Crashes Upon its debut, the FRIEND token entered the market with a trading price of $169 per token, attracting 18,000 holders, and boasting a circulating supply of 14 million tokens. However, the current trading price has plummeted to approximately $1.26, resulting in a market cap of $27.7 million and liquidity of $5.4 million, according to DexScreener data, leaving many investors frustrated. Related Reading: Why This Crypto Bull Run Might Not Live Up To The Past: Analyst The airdrop process, which aimed to distribute tokens to the community, has faced its fair share of challenges. Users on social media site X (formerly Twitter) expressed frustration over the declining value of their airdropped tokens. Some claimants experienced difficulties claiming their tokens, while others reported watching the value of their holdings diminish significantly in hours. One user even accused a prominent figure of orchestrating a rug pull, further fueling the community’s discontent. DeFi Researcher Slams Friend.tech V2 Launch Despite the current downturn, some crypto analysts predict a potential recovery for the FRIEND token. Notably, crypto analyst Daan Crypto Trades suggests that the token’s value may rise in the future, emphasizing that market sentiment may change once users start to see returns on their investments. However, concerns remain regarding the functionality of the Friend.tech app, which experienced significant issues during its initial weeks. DeFi researcher DeFi Ignas expressed disappointment in Friend.tech’s V2 launch, describing it as a “massive flop.” Ignas criticized the app’s usability issues and questioned whether the team’s focus was misplaced during development. Speculation arose regarding whether the team deliberately orchestrated a price decline to prompt a subsequent surge in value. Related Reading: Bitcoin Update: $120 Million Futures Liquidated As Price Takes A Beating Despite this, the self-proclaimed number one creator on Friend.tech’s platform, using the pseudonym “Captain Levi,” stated the following in support of the token: The dump is brutal but actually healthy as jeeters sell at heavily discounted prices while real users have not even waken up to the full potential of V2 and money clubs given the app barely works. think we already saw bottom and price should slowly recover as users buy clubs As Friend.tech grapples with the challenges surrounding the FRIEND token, the crypto community eagerly awaits improvements in app functionality and a potential revival of the token’s value. Featured image from Shutterstock, chart from TradingView.com