Friend.tech’s Dubious Fees Under Scrutiny: Is it a Scam?
In a surprising turn of events, a Twitter user known as @Loki_Zeng has brought to light serious allegations against the blockchain project Friend.tech. The tweet, written in Chinese, has sent shockwaves through the cryptocurrency community by pointing out a significant drop in the project’s token value, Racer, and accusing it of imposing exorbitant fees, potentially labeling it as a scam.
The tweet highlights that within just one week after the initial post, Racer’s value has plummeted from 9E+ to 6E+, raising serious concerns among investors and enthusiasts.
One of the most damning accusations made in the tweet is that Friend.tech may not be the revolutionary product it claimed to be. Instead, it is alleged to have a fee structure that imposes a dual-sided fee of 5% + 5%, effectively amounting to an astounding 22%. In contrast, established platforms like Opensea reportedly charge a mere single-sided fee of 2.5% + 2.5%. This stark difference in fees implies a 4.4-fold increase in the cost of transacting NFTs on Friend.tech.
The consequences of these alleged fees are substantial. With a total TVL (Total Value Locked) of 3600w, transaction fees have already reached 2400w. Additionally, 1200w each have been claimed by FT and Key issuers. Even if the 1200w from the issuers were to re-enter the market, it would still equate to a permanent outflow of 1200w from the market. Essentially, this means that of the 4800w initially invested by users over two months, 1200w has already gone into the hands of the project’s creators, while the remaining 1200w remains within the protocol.
— 0xLoki (@Loki_Zeng) September 21, 2023
This situation leaves Friend.tech users concerned about the future of their investments. If these allegations hold true, users face the grim prospect of how much of their initial 4800w investment will remain after a year.
The tweet hints at the intentions of Friend.tech’s developers, leaving little doubt about their possible involvement in the alleged scam.
As this story unfolds, the cryptocurrency community eagerly awaits further information and clarification from Friend.tech’s team. The allegations made in the tweet have ignited a debate about the project’s transparency and intentions. It is crucial for both the project’s creators and the cryptocurrency community to address these concerns and determine the validity of the claims raised in the Twitter post.
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