The launch of the highly-anticipated Friend.tech crypto airdrop hit turbulence on May 3rd as the largest recipient quickly sold over $180 million worth of the new FRIEND tokens. Meanwhile, other users reported being unable to claim their airdrop at all.

Just hours after the airdrop distribution began, blockchain data shows the wallet labeled "Murphys1d" dumped its entire stake of over 55,000 FRIEND tokens onto the market. This represented the biggest portion from Friend.tech's initial airdrop allocation.

The sell-off from the whale holder caused the FRIEND token price to plummet over 50% in value, dropping from around $3.26 to just $1.32 as of late morning UTC time on May 3rd. The token shed over 32% in just the hour leading up to publication.

Claim Issues Compound Problems Compounding the situation, several users complained about being unable to successfully claim their airdropped FRIEND tokens from the distribution. Noted crypto investor Luke Martin tweeted that he watched the value of his unclaimed airdrop drop from 7 figures to 5 figures while repeatedly failing to access it.

Martin alleged the Murphys1d whale wallet appeared linked to a fake account on X (formerly Twitter) with no activity, allowing it to accumulate over 500,000 Friend.tech points risk-free to maximize the airdrop allocation.

Too Much Centralization? While the FRIEND price tanked amid the dump from the largest holder, some experts saw potential upsides. Blockchain author Anndy Lian stated that the sell-off could actually help decentralize the token's distribution.

"It doesn't always mean a long-term downtrend," Lian told CoinTelegraph, adding "A broader distribution reduces the risk of a single entity having excessive control over the project."

However, Lian noted that restoring trust in the Friend.tech platform and how the team handles the situation will be crucial for preserving the token's value long-term. The turbulent launch exposed potential shortcomings in the airdrop claiming process and address scoring system.

As crypto airdrops continue gaining popularity, the Friend.tech case highlights the importance of preventing excessive token concentrations and thoughtfully rolling out claim procedures to maintain a fair, decentralized distribution. Avoiding such bottlenecks will be key for future successful launches.