According to Cointelegraph, popular DJ and crypto investor 3LAU (Justin Blau) has decided to leave decentralized social media platform Friend.tech, citing concerns over potential regulatory risks. In a Twitter thread on September 15, 3LAU explained that he had become more aware of the risks associated with the platform and found it too risky for his personal involvement. He plans to donate the 8 ETH he earned from the platform to a music-specific charity called the Paid In Full Foundation.
3LAU's main concern revolves around the automated market maker (AMM) that enables the trading of user keys (formerly known as shares) on the platform. He believes that such a feature on a social media platform sits in a regulatory gray area that could cause issues for users in the future. The DJ's decision to leave Friend.tech sparked a significant reaction on Twitter, with many users either supporting or criticizing his move.
Launched in mid-August, Friend.tech allows users to tokenize their social presence by buying keys from other users or selling their own. As the value of these keys can fluctuate due to various factors, 3LAU's departure highlights a challenging situation for those who no longer wish to use this type of social media platform. In a follow-up post, 3LAU clarified how he will compensate impacted key holders, stating that he will create a split contract to return all of the ETH to 3LAU Friend.tech key holders pro-rata at the block at which he sold the first key, while still donating the full value of all his keys to charity.
