- Fractionalized NFT platform Friend.tech experienced a 7.8% single-day TVL drop.
- Friend.tech user Hanwei Chang liquidated 43 fractional tokens, making a profit of around $232,000.
- Chang’s selling pressure caused token prices to crash, enabling him to repurchase 15 tokens at a lower price.
The 7.8% single-day TVL drop of fractionalized NFT platform Friend.tech appears driven partially by concerns about maneuvers from user Hanwei Chang, according to analyst Tom Wan.
The TVL of @friendtech dropped 7.8% in a single dayWhat happened?The new features in our @DuneAnalytics dashboard will show you what causes the drop (0/6) pic.twitter.com/JizJZtsSPs— Tom Wan (@tomwanhh) October 5, 2023
Wan utilized Dune Analytics, a blockchain data tool, to find out Chang was liquidating 43 of his own fractional tokens for around $232,000 in profits. This selling pressure crashed prices, allowing Chang to rebuy 15 tokens at a lower price.
October 4 represented the largest daily withdrawal volume since launch, totaling $3.5 million. Platform reserves remain around $17 million. Wan shared that recently, Friend.tech upgraded its login options in an effort to counter potential SIM swap attacks.
The drop in TVL comes amidst the recent swim swap scams. Recently, a scammer allegedly succeeded in absconding with approximately $385,000 worth of Ether (ETH) within a span of less than 24 hours. These events occurred in the midst of a series of SIM-swap hacks, which appear to be primarily focused on users of the Friend.tech platform.
Blockchain analyst ZachXBT disclosed on October 5 that the same wrongdoer managed to appropriate 234 ETH within the preceding 24 hours through SIM-swapping techniques involving four distinct Friend.tech users.
SIM swap attacks generally occur when the attackers take control of a person’s phone number, which is then used to gain access to their social media accounts. The rise in these kinds of attacks has alerted users, and many were asked to implement Two Factor Authentication to prevent such instances.
The post Friend.Tech TVL Drops 7.8% in One Day Alongside Mass Withdrawals appeared first on Coin Edition.