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DJ 3LAU causes a stir after opting out of Friend.tech over regulatory risks

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16 September 2023
in Cryptocurrency
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DJ 3LAU causes a stir after opting out of Friend.tech over regulatory risks

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In style DJ and crypto investor Justin Blau, higher recognized by his stage title 3LAU, has brought about a stir within the crypto neighborhood after out of the blue opting out of the decentralized social media platform Good friend.tech. Explaining the choice, the DJ highlighted issues over the regulatory dangers that the platform might pose.

In a Sept. 15 X ( previously Twitter) thread, 3LAU revealed that he stepped away from Good friend.tech after “understanding extra of the dangers.”

“I believe it’s an superior product, however a bit too dangerous for me (sadly). I shall be donating the 8-ish ETH to a music-specific charity that I’m obsessed with referred to as the Paid In Full Basis.”

3LAU added that his principal concern was across the automated market maker (AMM) that permits the buying and selling of consumer keys (previously generally known as shares) on the platform.

He prompt that such a characteristic on a social media platform sits in a regulatory grey space that could cause issues for customers down the monitor.

“I don’t suppose the dangers are *excessive* however I definitely have a duty to not interact in less-clear regulatory house[s],” he stated, including that: “All the things there’s in all probability high-quality minus the AMM mechanic, which holds extra threat, and I don’t need my model to have an AMM related to it, on this manner.”

The transfer brought about a major response on X, with the 3LAU hashtag fielding a protracted list of tweets from individuals including their takes to the state of affairs by both displaying help or criticizing the DJ.

Wanting on the feedback responding to his put up, there have been some individuals accusing him of dumping his shares on his followers or utilizing them as “exit liquidity.” Nonetheless, 3LAU has since acknowledged that he shall be reimbursing anybody who purchased his keys.

Good friend.tech, which was launched in mid-August, permits customers to tokenize their social presence by shopping for keys from different customers or promoting their very own.

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On condition that the keys can financially affect customers as they price cash and can fluctuate in value in response to many elements, the transfer from 3LAU highlights a difficult state of affairs 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 “an excessive amount of drama” surrounding his preliminary announcement.

“Making a cut up contract to return all of this ETH to 3LAU Good friend.tech key holders pro-rata on the block at which I offered the primary key. Nonetheless donating the complete worth of all my keys to charity. We cool now? Will observe up w/ transaction as soon as we get it accomplished.”

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