Friend.tech, which was launched in mid-August, enables users to tokenize their social presence by buying keys from other users or selling their own.

Related: Stoner Cats NFTs are ‘fan crowdfunding,’ not securities — SEC’s Peirce, Uyeda

Given that the keys can financially impact users as they cost money and can fluctuate in value in response to many factors, the move from 3LAU highlights a challenging situation for those who no longer wish to use this type of social media platform.

In a follow-up post, 3LAU clarified how he would compensate impacted key holders after noting that there had been “too much drama” surrounding his initial announcement.

3LAU added that his main concern was around the automated market maker (AMM) that enables the trading of user keys (formerly known as shares) on the platform.

He suggested that such a feature on a social media platform sits in a regulatory gray area that could cause issues for users down the track.

“I don’t think the risks are *high* but I certainly have a responsibility to not engage in less-clear regulatory space[s],” he said, adding 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 move caused a significant reaction on X, with the 3LAU hashtag fielding a long list of tweets from people adding their takes to the situation by either showing support or criticizing the DJ.

Looking at the comments responding to his post, there were some people accusing him of dumping his shares on his followers or using them as “exit liquidity.” However, 3LAU has since stated that he will be reimbursing anyone who bought his keys.

https://cointelegraph.com/news/dj-3lau-causes-a-stir-after-opting-out-of-friend-tech

Friend.tech, which was launched in mid-August, enables users to tokenize their social presence by buying keys from other users or selling their own.

Related: Stoner Cats NFTs are ‘fan crowdfunding,’ not securities — SEC’s Peirce, Uyeda

Given that the keys can financially impact users as they cost money and can fluctuate in value in response to many factors, the move from 3LAU highlights a challenging situation for those who no longer wish to use this type of social media platform.

In a follow-up post, 3LAU clarified how he would compensate impacted key holders after noting that there had been “too much drama” surrounding his initial announcement.

3LAU added that his main concern was around the automated market maker (AMM) that enables the trading of user keys (formerly known as shares) on the platform.

He suggested that such a feature on a social media platform sits in a regulatory gray area that could cause issues for users down the track.

“I don’t think the risks are *high* but I certainly have a responsibility to not engage in less-clear regulatory space[s],” he said, adding 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 move caused a significant reaction on X, with the 3LAU hashtag fielding a long list of tweets from people adding their takes to the situation by either showing support or criticizing the DJ.

Looking at the comments responding to his post, there were some people accusing him of dumping his shares on his followers or using them as “exit liquidity.” However, 3LAU has since stated that he will be reimbursing anyone who bought his keys.

https://cointelegraph.com/news/dj-3lau-causes-a-stir-after-opting-out-of-friend-tech