The crypto community was fussed when Justin Blau (3LAU), a Popular DJ and crypto investor, suddenly left the decentralized social media platform Friend.tech as he was concerned about the regulatory risk that platform may pose.
3LAU disclosed his departure from Friend.Tech. on a Twitter post, “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.”
The main concern of 3LAU is the automated market maker (AMM) that allows the trading of user keys (previously known as shares) on the platform. He also advised that the social media feature falls under a regulatory gray area and might cause problems for the user.
“I don’t think the risks are *high* but I have certainly responsibility to not engage in less-clear regulatory space,” he said. “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.”
Some people have accused him of dumping his shares on his followers or using them as “exit liquidity,” as per some comments in the response to his post. Nevertheless, 3LAU has since announced that he will reimburse anyone who purchased his keys.
Also Read: Friend.tech TVL Nears $20M After Being Declared Dead Weeks Ago
