Major cryptocurrency holder loses more than $ 16 million after investing in little-known digital token

Many cryptocurrencies have experienced significant price drops, resulting in losses for investors. For example, cryptocurrency trader Machi Big Brother suffered losses amounting to millions of dollars.

According to Lookonchain’s analysis, the influencer’s bet on Friend. Tech (FRIEND) resulted in a loss of $ 16 million. Although the timing of the initial investment was not disclosed, Machi Big Brother spent about 5,200 ETH, equivalent to $ 16.7 million, to purchase 11.1 million FRIEND tokens.

As Finbold reported back in June, Machi Big Brother began actively buying up FRIEND in early May, and as of June 8, he had spent $ 15.6 million. The ERC-20 token fell after a series of decisions by the Friend. Tech team. The developers decided to relinquish control over their smart contracts, which meant that they would cease operations within a year after the platform’s launch.

on September 8, the management transferred control of smart contracts to the Ethereum (ETH) zero address, thus emphasizing the complete cessation of operations. This move essentially means that Friend. Tech will no longer be able to perform basic tasks such as bug fixes or feature enhancements on the platform.

At the time of writing, FRIEND is trading at $ 0.079, which reflects a 20% loss overnight.

Losses suffered by an influencer usually emphasize the volatility of the cryptocurrency market and the need for research before investing. However, in the case of Friend. Tech, centralization may be the main factor behind the current situation. According to experts, the platform lacks a community-driven narrative that could influence the decision to relinquish control over smart contracts.