DJ 3LAU Raises Concerns Over Regulatory Risks and Donates Crypto to Charity

Popular DJ and crypto investor 3LAU (Justin Blau) has caused a stir in the crypto community after suddenly opting out of decentralized social media platform Friend.tech. Explaining the decision, the DJ highlighted concerns over the regulatory risks that the platform may pose.

3LAU, a well-known DJ and crypto enthusiast, recently made headlines after withdrawing from the decentralized social media platform Friend.tech. In a Twitter thread on September 15th, he expressed his decision to step away from the platform after understanding the potential risks involved.

"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," 3LAU tweeted.

One of the main concerns 3LAU raised was the platform's automated market maker (AMM), which facilitates the trading of user keys on Friend.tech. He suggested that this feature could fall into a regulatory gray area, potentially causing issues for users in the future.

"I don’t think the risks are *high* but I certainly have a responsibility to not engage in less-clear regulatory spaces," he explained. "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."

Reactions and Accusations

3LAU's decision to leave Friend.tech sparked a significant reaction on social media platforms, with the hashtag #3LAU attracting numerous tweets from individuals sharing their thoughts on the situation. Some users criticized the DJ, accusing him of dumping his shares on his followers or using them as "exit liquidity."

However, 3LAU addressed these accusations and stated that he would reimburse anyone who had purchased his keys on the platform.

Friend.tech, launched in mid-August, allows users to tokenize their social presence by buying and selling keys. These keys can have financial implications as their value fluctuates based on various factors. This highlights a challenging situation for individuals who no longer wish to use this type of social media platform.

Compensation and Moving Forward

After acknowledging that there had been "too much drama" surrounding his initial announcement, 3LAU provided further clarification on how he plans to compensate users affected by his withdrawal from Friend.tech.

"Making a split contract to return all of this ETH to 3LAU Friend.tech key holders pro-rata at the block at which I sold the first key. Still donating the full value of all my keys to charity. We cool now? Will follow up w/ transaction once we get it done," he assured.

3LAU's decision to step away from Friend.tech highlights the need for individuals to carefully consider the regulatory risks and potential challenges associated with decentralized platforms. The DJ's philanthropic gesture of donating his crypto to a music-specific charity emphasizes the importance of giving back to the community.

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