Renowned DJ and crypto enthusiast Justin Blau, better recognized as 3LAU, has ignited ripples within the crypto community by abruptly disengaging from the decentralized social media platform, Friend.tech.
This unexpected departure from the platform was primarily attributed to 3LAU’s growing apprehensions regarding its regulatory implications.
In a Twitter thread dated September 15, 3LAU unveiled his decision to distance himself from Friend.tech, citing a newfound awareness of the associated risks.
Despite acknowledging the platform’s potential, he confessed that it was excessively precarious for his liking.
In a gesture of goodwill, 3LAU pledged to donate the approximately 8 ETH he had accumulated to the Paid In Full Foundation, a charity close to his heart.
The core concern that drove 3LAU’s exit from Friend.tech revolved around the automated market maker (AMM) feature, responsible for facilitating the trading of user keys, formerly known as shares, on the platform.
He raised concerns that such a feature on a social media platform could potentially find itself in a regulatory gray area, posing future problems for users.
He stressed his commitment to maintaining a clear regulatory track record and opted to distance his brand from any association with an AMM mechanism.
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3LAU’s departure sent shockwaves across the X platform, where the #3LAU hashtag trended as users shared diverse opinions ranging from supportive sentiments to critical viewpoints.
Some individuals accused him of offloading his shares onto his followers or using them as “exit liquidity.” However, 3LAU promptly reassured everyone that he would reimburse those who had purchased his keys.
Friend.tech, which had only been launched in mid-August, introduced a unique concept that allowed users to tokenize their social presence by buying or selling keys among one another.
Given that these keys held financial value and fluctuated based on various factors, 3LAU’s decision underscored the complexities surrounding users who wished to discontinue their engagement with this novel form of social media.
In a subsequent post, 3LAU addressed the concerns and controversies that had arisen in the wake of his initial announcement.
He proposed the creation of a split contract to return all the ETH he received from 3LAU Friend.tech key holders pro-rata, effectively resolving the issue and emphasizing his commitment to charitable contributions. This clarification marked a step towards amicably concluding the matter.
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