The token FRIEND has seen dramatic volatility after rumours of a rug pull surfaced, leading to a significant price drop of 97% from its all-time high. The correction worsened due to the circulating rumours. However, the good news is that FRIEND has shown signs of a strong recovery, climbing 50% in one day following an announcement from the Friend.Tech team.
This volatility has caused concern among investors, but the Friend.Tech team was quick to deny the rug pull claims, reassuring users that their platform continues to operate securely.
Rug Pull Rumours That Caused FRIEND’s Price to Plummet
Over the past week, the Friend.Tech community was shocked by the sudden spread of troubling news regarding a potential rug pull. These rumours quickly gained traction on social media, sparking fears among users about the safety of their funds on the platform. As a result of this panic, FRIEND’s price saw a sharp correction.
The token dropped by around 97% from its peak, further exacerbated by the swirling rumours. This decline reflected a loss of confidence among users and investors in the platform, which had previously garnered a lot of enthusiasm due to its potential within the Web3 space.
But what led to the emergence of these rug pull rumours? A key factor was the Friend.Tech team’s decision to relinquish control over the smart contract governing the platform. While this move is often a standard practice in blockchain projects to enhance decentralisation, some users interpreted it differently. To them, giving up control over the smart contract signalled the beginning of the team’s departure from the project, reinforcing suspicions of a rug pull.
As this fear spread, it fuelled wild speculation, prompting many to sell off their FRIEND tokens in large volumes, worsening the situation and accelerating the price decline. This platform, meant to be an innovative solution in the blockchain-based social space, found itself in the midst of negative attention, reflected in the plummeting token price.
Price Recovery After Rug Pull Denial
Following the swift spread of rug pull rumours and the subsequent significant price drop, the Friend.Tech team took immediate action. They issued an official statement denying the allegations and clarified the real reason behind their decision to relinquish control of the smart contract. According to the team, this move was part of a pre-planned decentralisation effort, not an indication that they were abandoning the project.
In their official statement on Twitter, Friend.Tech assured users that they had no intention of closing or shutting down the Friend.Tech web application. They also confirmed there would be no changes to the smart contract that could introduce new fees or increase current ones. Finally, they reassured users that the app’s functionality would remain unchanged, with no significant alterations.
This announcement brought relief to the concerned community, helping to quell fears that had spread throughout the market. The denial helped restore some user confidence, prompting a wave of buybacks for FRIEND tokens. Friend.Tech’s quick response was seen as a positive sign, reaffirming their commitment to the platform’s roadmap.
As a result, the FRIEND token began to rebound, recording a 50% price increase following the team’s clarification. This recovery demonstrated that, despite the earlier panic, optimism still exists regarding Friend.Tech’s future.
In such a volatile situation, it’s crucial for investors to avoid acting on unverified rumours. This incident serves as a valuable reminder of how unclear news and speculation can quickly impact the sensitive crypto market. In Friend.Tech’s case, the development team’s swift response was key in regaining market trust.
Looking ahead, it’s essential for blockchain platforms like Friend.Tech to maintain transparency and clear communication with their communities. While blockchain technology offers the promise of decentralisation and security, information uncertainty can lead to significant volatility, as seen with FRIEND’s recent price fluctuations.
Despite the challenges, FRIEND has shown impressive resilience. For investors and fans of the platform, this episode serves as a reminder that volatility is an inherent part of crypto investing, and making informed decisions with accurate information is crucial in navigating market fluctuations.
