- Friend Tech hits record single-hour sell volume of $2.399 million.
- Points distribution leads to intense selling pressure on the platform.
- Rapid growth in Friend Tech’s user base and TVL results in smaller points distribution.
Friend Tech, a key player in the DeFi space, has set a new record for the highest single-hour sell volume in its history. Following this week’s points distribution, the sell volume for Friend Tech keys soared to an unprecedented $2.399 million, equivalent to 1,466 ETH. This milestone has led to discussions within the community about the implications of such strong selling pressure.
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Over the past week, Friend Tech has seen a sharp rise in its user base and total value locked (TVL), which in turn has reduced the amount of points being distributed to each user. While the platform’s expansion is generally a positive indicator, the lower point yields have resulted in an intense burst of selling immediately after points were distributed.
This phenomenon raises several questions about the sustainability of Friend Tech’s current points distribution system. The massive sell-off could deter long-term investment in Friend Tech keys, thereby potentially affecting the ecosystem’s stability. Moreover, the high selling pressure might indicate that many users are looking to cash out quickly, which could be a symptom of broader concerns about the platform’s future viability.
Friend Tech might need to reevaluate its points distribution mechanism to mitigate the impact of such intense selling pressure. Adjustments could involve revising the frequency or amount of points distributed or implementing new incentives to hold rather than sell.
Summary: Friend Tech has set a new record for its largest single-hour sell volume at $2.399 million (1,466 ETH) immediately after this week’s points distribution. The surge in sell volume has sparked conversations about the strong selling pressure on the platform, especially in the context of its rapid user and TVL growth. This raises questions about the current sustainability of Friend Tech’s points distribution system and the potential need for reform.
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