DJ and crypto investor 3LAU leaves Friend.tech due to regulatory concerns, sparking discussions in the crypto community.
On September 15, 2023, 3LAU, a DJ and crypto investor, posted on X about his decision. He praised Friend.tech as a great product but had worries about its regulatory challenges. Due to these concerns, he chose to leave the platform.
Additionally, he mentioned his plan to donate around 8 ETH earned from Friend.tech to a music-focused charity called the Paid In Full Foundation, something he deeply cares about.
Because people will ask…
Just off-boarded https://t.co/ekERrR7Af3 after understanding more of the risks.
I think it’s an awesome product, but a bit too risky for me (unfortunately).
I will be donating the 8 ish ETH to a music-specific charity that I’m passionate about called…
— 3LAU (@3LAU) September 15, 2023
3LAU had a significant concern regarding Friend.tech’s automated market maker (AMM) system. This system lets users trade user keys (formerly shares) on the platform, essentially allowing people to trade their social media presence.
However, 3LAU felt that this feature operates in a regulatory gray area, which could potentially create problems for users down the road. While he didn’t see the risks as extremely high, he believed it was his responsibility to stay away from areas with unclear regulatory rules.
3LAU’s Decision to Distance from AMM and Addressing Concerns
3LAU made it clear in his statement that he didn’t want his brand linked to an AMM in this particular context. This choice sparked a strong reaction on social media, with some people supporting him and others criticizing the DJ.
Interestingly, some users accused 3LAU of selling his keys, which could potentially have a negative impact on his followers or be seen as a way to exit the platform. However, 3LAU quickly addressed these concerns by stating that he would refund anyone who had bought his keys.
Because people will ask…
Just off-boarded https://t.co/ekERrR7Af3 after understanding more of the risks.
I think it’s an awesome product, but a bit too risky for me (unfortunately).
I will be donating the 8 ish ETH to a music-specific charity that I’m passionate about called…
— 3LAU (@3LAU) September 15, 2023
Navigating Decentralized Social Media and Crypto Responsibly
Friend.tech, launched in mid-August, allows users to turn their social presence into tokens by buying and selling keys. These keys carry financial value and can change in worth due to various factors, making it challenging for users looking to leave the platform.
3LAU has outlined his plan to compensate Friend.tech key holders and minimize any initial issues. He suggested using a split contract to distribute ETH earnings to key holders pro-rata, starting from the first key sale block. He also reiterated his commitment to donating the key’s value to charity.
This situation underscores the importance of responsibly navigating the evolving regulatory landscape of cryptocurrencies and decentralized social media. 3LAU’s actions reflect a responsible approach to addressing concerns related to exiting such platforms.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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