Crypto Whale Loses 95% of Massive Bet on Little-Known Altcoin

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As an analyst with years of experience observing the crypto market, I have witnessed numerous instances of whales diving headfirst into the deep end, only to surface with a lesson learned. The case of Machi Big Brother is no exception.

A significant investor in cryptocurrencies, often referred to as a ‘crypto whale’, invested approximately 5,200 Ethereum (ETH) tokens, valued at over $11.1 million, in the native token of Friend.Tech (FRIEND). However, this investment resulted in a staggering 95% loss for the investor.

Based on information from the analytics firm Lookonchain, it’s reported that a well-known cryptocurrency figure, Machi Big Brother, is said to have invested approximately $16.7 million in FRIEND tokens, which are the second-largest cryptocurrency by market capitalization (ETH). This investment acquired him around 11.1 million FRIEND tokens at that specific point in time.

Over the past year, the decline in SocialFi’s popularity amidst the cryptocurrency market correction has led to a dramatic drop in the value of FRIEND token, with its price plummeting approximately 95%. Initially trading above $3, it is now exchanged at only $0.08 per token.

Consequently, the value of Machi Big Brother’s FRIEND tokens, which had previously been approximately $17 million, has dropped to roughly $700,000 at present.

As a researcher examining digital asset transactions, I recently observed Machi Big Brother (@machibigbrother) investing approximately 5,200 ETH (equivalent to around 16.7 million dollars at the time) in purchasing roughly 11.1 million $FRIEND tokens. However, the current value of these tokens stands at a mere 0.7 million dollars, indicating a significant loss of nearly 16 million dollars for Machi Big Brother on this particular investment in $FRIEND.— Lookonchain (@lookonchain) September 9, 2024

For a while now, the value of FRIEND tokens has been dropping steadily. However, a significant drop occurred when the team responsible for the SocialFi platform relinquished control over their smart contracts. This move essentially froze the system and halted any future modifications to it.

On their microblog, X’s developers mentioned that this update won’t influence the ongoing operation of the web client at friend.tech. This separate platform will carry on functioning without any alterations. Neither smart contracts nor friend.tech are currently providing fees to the friend.tech development team’s multisig wallet.

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2024-09-10 01:37