KANALCOIN NEWS – Having a responsibility to avoid regulatory gray areas, DJ 3LAU opted out of Friend.tech because the risks were too high.
DJ 3 LAU, a popular DJ and crypto investor whose real name is Justin Blau, is leaving decentralized social media platform Friend.tech. Of course, this is quite surprising news as the explanation highlights concerns over the regulatory risks that the platform may pose.
DJ 3LAU explained on his X account why he left Friend.tech because the risks were too high.
“I think it’s a great product, but it’s a little too risky for me. I will be donating 8 ETH coins to a music-specific charity that I love called the Paid In Full Foundation.”
3LAU also added that its main focus is on the automated market makers (AMMs) that enable shares on the platform. These regulations can cause problems for users in the future.
“I don’t think the risk is high, but I certainly have a responsibility not to get involved in unclear regulatory spaces. Everything might be fine, except AMM mechanics, which have more risks, and I don’t want my brand to be associated with AMM, in this way.” Added DJ 3LAU
DJ 3LAU’s actions caused mixed reactions. There are those who support it, but there are also those who criticize it. This can be seen from the hashtag 3LAU which has persisted for a long time on Twitter
3LAU has also faced accusations of dumping its shares on its followers or using them as exit liquidity. But he immediately denied it. And said he would reimburse anyone who bought the key.
Please note that Friend.tech is a decentralized social application, it has received a lot of attention since its launch in August. The app allows users to mark their social presence by buying keys from other users or selling their own keys. There are also those who explain that this is a social media that combines crypto functions and social engagement.
3LAU’s move does highlight anyone who doesn’t want to use the platform. Because this key can have a financial impact on the user. Due to cost requirements and can fluctuate in value in response to many factors.
3LAU promised to compensate affected key holders after noting that there were too many issues surrounding its initial announcement. He clarified this in a later post.
“Created a separate contract to return all this ETH to 3LAU Friend.tech key holders on a pro-rata basis on the block where I sold the first key. Still donating all my key values to charity. Are we safe now? Will follow up with the transaction once we complete it.” Obviously 3LAU closed his explanation.
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