Popular DJ and crypto investor Justin Blau, higher identified by his stage title 3LAU, has brought on a stir within the crypto neighborhood after instantly opting out of the decentralized social media platform Friend.tech. Explaining the choice, the DJ highlighted considerations over the regulatory risks that the platform might pose.
In a Sept. 15 X ( previously Twitter) thread, 3LAU revealed that he stepped away from Friend.tech 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 the Paid In Full Foundation.”
Because folks will ask…
Just off-boarded https://t.co/ekERrR7Af3 after understanding extra of the risks.
I believe it’s an superior product, however a bit too dangerous for me (sadly).
I will probably be donating the 8 ish ETH to a music-specific charity that I’m captivated with known as…
— 3LAU (@3LAU) September 15, 2023
3LAU added that his important concern was across the automated market maker (AMM) that allows the buying and selling of consumer keys (previously referred to as shares) on the platform.
He instructed that such a characteristic on a social media platform sits in a regulatory grey space that could cause issues for customers down the observe.
“I don’t think the risks are *high* but I certainly have a responsibility to not engage in less-clear regulatory space[s],” he mentioned, including that: “Everything there is probably fine minus the AMM mechanic, which holds more risk, and I don’t want my brand to have an AMM associated with it, in this way.”
The transfer brought on a vital response on X, with the 3LAU hashtag fielding a lengthy list of tweets from folks including their takes to the scenario by both displaying help or criticizing the DJ.
Looking on the feedback responding to his put up, there have been some folks accusing him of dumping his shares on his followers or utilizing them as “exit liquidity.” However, 3LAU has since said that he will probably be reimbursing anybody who purchased his keys.
translation: you dumped in your holders pic.twitter.com/XAJDMYznlG
— Tom (@thomasjeans) September 15, 2023
Friend.tech, which was launched in mid-August, allows customers to tokenize their social presence by shopping for keys from different customers or promoting their very own.
Given that the keys can financially impression customers as they value cash and can fluctuate in value in response to many components, the transfer from 3LAU highlights a difficult scenario for many who now not want to use this sort of social media platform.
In a follow-up put up, 3LAU clarified how he would compensate impacted key holders after noting that there had been “too much drama” surrounding his preliminary announcement.
“Making a split contract to return all of this ETH to 3LAU Friend.tech key holders pro-rata at the block at which I sold the first key. Still donating the full value of all my keys to charity. We cool now? Will follow up w/ transaction once we get it done.”
Just noticed your put up.
One of my cofounders @MartyDevin has comparable considerations.
And the way in which you exited was strong. I truly bought every thing apart from my very own keys a couple weeks in the past once they have been about to go anti-competitive. https://t.co/bD6UAoLiFm
— Flu | wafflesbrah.eth ⚡️ (@DeFinalFantasy) September 15, 2023