Crypto Influencer $16M Loss on Friend.Tech Bet Highlights Market Risks

Cryptocurrency influencer Machi Big Brother faces a massive $16 million loss after investing in the declining SocialFi token Friend.Tech, amid volatile market conditions.

In a stark reminder of the risks inherent in cryptocurrency investments, pseudonymous influencer Machi Big Brother has reportedly suffered a significant financial setback, with losses amounting to $16 million on a substantial bet placed on the Friend.Tech token (FRIEND). This information comes from a detailed analysis by Lookonchain, shared in an X post dated September 9.

The influencer’s venture into the SocialFi project involved an investment of approximately 5,200 ETH, valued at $16.7 million at the time, to acquire 11.1 million FRIEND tokens. However, the value of this investment has dramatically dropped to just $0.7 million due to ongoing sell-offs of the FRIEND token.

Friend.Tech has been under scrutiny following a decision by the project’s team to relinquish control of its smart contracts. Notably, on September 8, they transferred control to the Ethereum null address, effectively ceasing operations within a year of the platform’s launch. This action has terminated their ability to conduct essential functions like bug fixes or feature enhancements, directly impacting the token’s performance and trustworthiness.

This scenario is not Machi Big Brother’s first encounter with losses in this token. Reports from Finbold in June noted that after initial purchases in May, losses had already amounted to $7.9 million by June 8. The latest developments only exacerbate the financial impact on the influencer.

FRIEND’s market performance continues to plummet, with the token’s value decreasing by 52% in a single day and 80% over the week. This rapid decline has sparked discussions within the cryptocurrency community about the sustainability of Friend.Tech and whether the loss could be considered a rug pull, given the project’s backing by venture capitalists.

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