3LAU's Exit: Crypto and Concerns

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Martin Walker
Sep 16, 2023 at 01:38 pm

Renowned DJ and cryptocurrency enthusiast, Justin Blau, widely recognized by his stage moniker 3LAU, recently sparked discussion within the cryptocurrency community by making an abrupt exit from the decentralized social media platform, Friend.tech. He elucidated his choice by expressing apprehensions regarding the platform's regulatory vulnerabilities.

In a Twitter thread on September 15th, 3LAU disclosed that he distanced himself from Friend.tech upon gaining a deeper understanding of its associated risks.

"While I find the product impressive, it leans a bit too far into risk territory for my comfort. Regrettably, I've decided to step back. I intend to contribute the approximate 8 ETH to a music-centric charity close to my heart, known as the Paid In Full Foundation."

3LAU underscored that his primary concern revolved around the automated market maker (AMM) facilitating the trade of user keys, once referred to as shares, on the platform.

He contended that such a characteristic in a social media platform inhabits a regulatory gray zone that could potentially pose challenges for users in the future.

"I don't perceive the risks to be excessively high, but I certainly bear a responsibility to avoid involvement in regulatory territories that lack clarity," he stated, adding, "Almost everything seems fine except for the AMM mechanism, which carries elevated risk. I am averse to having my brand associated with an AMM in this manner."

This decision elicited a significant response on Twitter, with the 3LAU hashtag attracting a plethora of tweets reflecting various perspectives on the DJ's move, ranging from supportive to critical.

Upon reviewing the comments addressing his post, some accused him of offloading his shares onto his followers or utilizing them for "exit liquidity." Nonetheless, 3LAU clarified that he plans to reimburse anyone who purchased his keys.

Friend.tech, introduced in mid-August, empowers users to tokenize their social presence by either purchasing keys from fellow users or selling their own.

Considering the financial implications associated with these keys, as they involve monetary investment and are subject to fluctuation based on numerous factors, 3LAU's departure underlines the complexity faced by individuals no longer interested in utilizing this form of social media platform.

In a subsequent post, 3LAU outlined how he intends to compensate affected key holders, acknowledging the excess commotion generated by his initial announcement.

"I'm in the process of devising a contract to return the entire ETH amount to 3LAU Friend.tech key holders proportionally, based on the block at which I initially sold the first key. The complete value of my keys will still be directed towards charitable causes. Are we on the same page now? I'll provide further details once the transaction is completed."

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