Expert Warns Friend.tech Clones Are ‘Going to Die’ – Advises Not to ‘Bag Hold’

The social networking platform Friend.tech has exploded in popularity recently, sparking a wave of copycat platforms trying to cash in on the hype. While the excitement around these new platforms is understandable, crypto expert Altcoin Sherpa warns investors to be cautious.

In a recent Twitter thread, Sherpa explained that while the initial rewards on these platforms seem enticing, most will eventually fail.

“Don’t invest what you can’t afford to lose,” he advised.

Unlike new crypto sectors, Sherpa notes these platforms operate more like speculative layer 1 blockchains. There is likely to be an influx of activity and value at first that savvy investors can benefit from.

A key difference is these platforms rely on influencer involvement rather than whales for activity. The creators have outsized influence compared to past protocols.

However, Sherpa warns this hype is unlikely to last. He recommends taking profits quickly, just as investors did in the 2021 layer 1 craze.

“Don’t get greedy and bag hold,” he cautioned.

Emerging social token ecosystems represent a new model compared to previous DeFi sectors. They function more like an alternative layer 1, attracting speculation and total value locked (TVL) that early adopters can capitalize on.

These social networks rely on influencers rather than whales to drive adoption. For once, creators have outsized influence as core components of these protocols, a departure from past norms.

For those who farmed rewards on networks like Avax, FTM, LUNA, and SOL in 2021, the key is extracting profits. Avoid greed, exercise caution, and don’t overstay your welcome. The social token party won’t last forever.

In the end, tread carefully around the growing number of Friend.tech clones. While they may provide short term gains, few are likely to endure. Heed Sherpa’s advice – don’t fall for scammers and get your profits out early!

We recommend eToro

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more
Active user community and social features like news feeds, chats for specific coins available for trading.
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
intelligent crypto
How are  regular people making returns of as much as 70% in a year with no risk?  By properly setting up a FREE Pionex grid bot - click the button to learn more.
Crypto arbitrage still works like a charm, if you do it right! Check out Alphador, leading crypto arbitrage bot to learn the best way of doing it.

Tags:

Petar Jovanović
Petar Jovanović

As the Head of Content at Captainaltcoin, I bring years of experience in the crypto industry. With a strong belief in the potential of the web3 market since 2017, I'm passionate about sharing valuable insights and knowledge. Feel free to connect with me on LinkedIn and let's discuss the exciting world of cryptocurrencies and decentralized technologies!

CaptainAltcoin
Logo