After Aptos Blockchain and Aptos (APT) coin hit the market, it has occupied the agenda of the crypto market to a great extent. The lack of token economy regarding crypto money has caused criticism. Also, the price of the coin has dropped below the levels it recorded when it entered the market. Here are the details and comments…
Aptos coin price drop: Here’s what happened
It is alleged that the team behind the layer-1 Blockchain network using the Move programming language did not spend enough time creating proper tokenomics. After the sudden occurrence of an airdrop with no anti-Sybil attack system, APT suddenly dropped the token from $15 to $13. That is, it faced tremendous selling pressure which led to the decline. Large sell orders start an active sales chain. This gradually pushed the price of the token to $7.
Sybil attack protection is the foundation of any airdrop. It prevents a single user from creating too many nicknames and earning more coins with it. Without proper protection, a user can create multiple accounts for an airdrop. He can then sell them on the market: as in APT. While users can quickly sell their assets in one transaction; The lack of protection and proper planning resulted in a catastrophic increase in sales pressure.
Exchanges did not act according to the wishes of the Aptos team
Another issue that Aptos has come up with is that the exchanges act against the team’s will. At least, that’s the case, according to Wu Blockchain, a China-based blockchain journalist. As we have reported as Kriptokoin.com, exchanges such as Binance and FTX will list a permanent futures contract against the wishes of the Aptos team. OKX has joined Binance with a similar product offering to be released on the same date. These contracts make both long and short positions possible.
Aptos in March; Tiger Global has secured $200 million in an a16z-led funding round with participation from Katie Haun, Multicoin Capital, FTX Ventures, Coinbase Ventures, Binance Labs and PayPal Ventures. This round put the company’s valuation at $2 billion.
The new Internet Computer 2.0 case?
Some in the crypto community speculate that Aptos will follow in the footsteps of other VC-backed projects. Unfortunately, many of these projects are in decline. The most appropriate example of this lately is Internet Computer (ICP). In May 2021, Switzerland-based The DFINITY Foundation launched Internet Computer (ICP), which ranked fourth in market capitalization just four days after launch.
Despite its sudden and impactful start, the project has been running since 2016. At its peak, the ICP was priced at $700 with a market cap of $18.5 billion. The purpose of the platform was to expand internet functionality by eliminating centralized servers and traditional cloud services. Instead, applications would run without a fixed address through the Blockchain infrastructure of independent data centers.
The project was supported by major VC firms including Polychain Capital, Andreessen Horowitz (a16z,) CoinFund, Multicoin Capital and Greycroft Partners. In a private sale in August 2018, less than 5 percent of the initial supply was sold for a price of $4. After its peak in May 2021, it is likely that those who bought coins at a cheap price in this particular sale sold out. ICP is currently priced at $4.94, down 99.3 percent from its all-time high.
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