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Over the weekend, decentralization suffered a major blow as the highly acclaimed social media Friend Tech hit the rocks. With the developers renouncing the smart contract to Web3 media, its ecosystem was plunged into turmoil, leaving investors with heavy losses. One of the biggest identified losers is Machi Big Brother, a top project proponent.
Heavy losses linked to Friend Tech
According to data from the crypto analytics platform Lookonchain, popular investor Machi Big Brother invested roughly 5.2 Ethereum, worth $16.7 million, into the Friend Tech project. When he invested the funds, he received 11.1 million FRIEND tokens, now worth just $0.7 million.
Arman ShirinyanIn one of the biggest cases of investment gone bad in crypto, Machi Big Brother has notably lost $16 million. This loss has sparked debates in the community, with many choosing not to believe that Machi Big Brother could have voluntarily taken on the losses.
The Friend Tech project signifies many things that send crucial lessons to investors. Investment in crypto projects remains highly susceptible to losses and, thus, requires smart risk management measures. While it was not a meme coin, FRIEND has plunged by more than 50% in 24 hours to $0.06305.
Over the past year, the token has fallen by more than 96%.
Are meme coins better options?
At its peak, Friend Tech shook the market with its incentivization model and impressive revenue to beat existing protocols. However, the project could not be sustained for long.
Alex DovbnyaThis brings to mind the trend seen on most meme coin projects, which rose to fame but soon lost traction. However, over the past year, there has been a significant boost in the meme coin outlook, with PEPE, dogwifhat (WIF) and Shiba Inu (SHIB) returning massive gains to investors.
These tokens have returned impressive growth over the past year and are also rolling out unique products to affirm sustainability.
Alex Dovbnya
Vladislav Sopov
Dan Burgin