the losing of the v-plates

claudia • water, water everywhere and not a drop to drink
i have this really close friend who's recently initiated a lot of foreplay with me, but i'm very reluctant to pursue it any further and usually ask for him to stop. 
of course i feel profoundly for him, but i am by no means in love or interested in those terms, but he thinks that losing it to your bestfriend is one of the best ways to go about it. i'm not one to play morality police, sex is fun - i've heard - and if i had a positive track record i would probably find myself doing it often – i'm just not comfortable with the concept of being so intimate for the first time with a friend. am i being hypocritical?  ridiculous?