In what may seem like a commonplace DJ departure, well-known DJ and crypto enthusiast 3LAU (also known by his actual name, Justin Blau) recently caught the attention of the crypto community due to his sudden decision to disengage with Friend.tech, a decentralized social media platform. This move stemmed from the musician’s concerns over certain factors that could potentially result in regulatory risks for the platform’s users.
In a Twitter thread, 3LAU pointed out that it wasn’t as much about the associated risks being notably high, rather the uncertain and shadowy nature of those risks – stemming from the Automated Market Maker (AMM) feature on the social media platform. According to him, this particular feature could inadvertently create a scenario that may result in potential regulatory problems for users over an unclear timeframe. The AMM feature, which facilitates the trading of user keys (formerly known as shares), was labeled by 3LAU as something that “holds more risk.”
Once he announced his decision, a significant reaction spiked within the Twitter community, with users standing divided in their opinions. While some sided with 3LAU expressing their support, others were quick to accuse him of dumping his keys on his followers. And, some even went as far as to suggest that his followers were used as “exit liquidity.” In response to the criticism, 3LAU offered compensation to those who purchased his keys.
Launched in mid-August, Friend.tech offers its users the opportunity to tokenize their social presence either through purchase of keys from other users or selling their own. Interestingly, these keys have the ability to financially influence users as their value can migrate based on a multitude of factors. This makes this DJ’s sudden decision not to tread on the platform quite a perplexing situation for those who no longer desire to engage with this type of social media platform.
In response to the ensuing chatter after his initial announcement, 3LAU set out to clarify the steps he will take to compensate impacted key holders and reiterated his plan to donate the proceeds resulting from his keys to a music-specific charity.
Though the risk may not be exceptionally high, navigating less-clear regulatory spaces certainly adds a layer of unpredictability and serves as a stark reminder for users exploring decentralized social media platforms. Hence, it’s clear that a tug-of-war persists between the thrills of potential gains and lurking regulatory ambiguities. Industry participants must ensure they’re mindful of this delicate balance as they chart their course in this promising new technological frontier, a sentiment certainly echoed by DJ 3LAU, as implied by his decision.
Source: Cointelegraph
