#ChartoftheDay Last Friday, Friend.Tech, one of the most successful #SocialFi projects in crypto, launched its native token “FRIEND” while unveiling Version 2 of the platform. According to CoinGecko data, the token’s price fell from $3.03 to as low as $0.89 on its first day of trading.

A notable new feature of V2 is Money Club, which allows communities to manage shared treasuries and mint tradable on-chain collectibles, like NFTs. The platform also rolls out a new point system designed to reward users for their contributions and interactions on the platform. However, all these features fail to spark too much enthusiasm so far. Also, users reported glitches when trying to access the new Money Club feature.

Friend.Tech works by allowing social media personalities, known as “Subjects," to offer “shares” to their community, granting them access to private chats. When debuted last August, Friend.Tech was an immediate hit, realizing a meteoric rise to over 100,000 users and an impressive $2 million in revenue within its inaugural month.

However, the hype soon ebbed away by the end of 2023. According to a Dune Analytics dashboard that measures the daily buying and selling volume of “Subjects,” the buying and selling activities became active again in April when the platform announced its token launch. However, after the token launch, daily selling volumes hit record highs.

The selloffs of both the FRIEND token and “Subjects” reflect the outflow of users now that the airdrop anticipation or financial incentives are gone. While token dumping and price dips after airdrops are not new, will Friend.Tech be able to reverse the long-term downturn?