The supposed “Solana Killer” has dropped more than 40% in value since launch
Aptos is not having a very great launch. The token and blockchain that has been touted as the “Solana Killer: Killer doesn’t seem like much of a threat after a dismal launch which has seen some question everything from the tokenomics to the communication of the team.
The launch started off with a few issues, one of which being the muting of the Discord server by the team at Aptos. This was later explained by co-founder Mo Shaikh to have been done to keep members safe from any type of scams during the initial launch of the platform.
The blockchain opened but had a throughput less than promised and that made a few people uneasy.
Let's look at transaction speeds on Aptos.— Paradigm Engineer #420 (@ParadigmEng420) October 17, 2022
Aptos promises 100k TPS in its finalized version. However, the current TPS is somewhere around 4 transactions per second. pic.twitter.com/joWnxAeIpZ
This was again addressed by Shaikh who stated the low TPS was not fully representative of the capacity of Aptos’ network and would eventually change once more projects came online and more activity was found on the blockchain.
Tokenomics were also a sore point during the launch as the details were very opaque. Other platforms such as FTX and Binance were already listing the token without anyone knowing any details about the tokenomics of the project.
It's not great that FTX/Binance etc are all listing Aptos without any tokenomics transparency at all. Surely it should be a prerequisite to listing something that users can have the basic information on what they're buying lol— Cobie (@cobie) October 18, 2022
When the details were finally shown it was revealed that an unusually high percent (49%) was allocated to developers and private investors, this prompted some to state the network catered to Venture Capital.
The company also announced 20 million APT tokens for an airdrop with only 110,000 people eligible for the drop.
“The Aptos Foundation has provided early network participants with APT tokens. If you are eligible to claim, you will receive an email from firstname.lastname@example.org in the next few hours” they tweeted.
1/ The Aptos Foundation has provided early network participants with APT tokens. If you are eligible to claim, you will receive an email from email@example.com in the next few hours.— Aptos (@AptosFoundation) October 18, 2022
All of this has led to the token droping over 40% currently trading at $7.57 per token dropping from its original launch high of $13.73.
Shaikh once again made a statement about the tokenomics and the project stating that the token was made for the people.
but not many were impressed by his statements and the fact that he promised a 7% yearly yield to all those who stake the token.
Some even questioned the spot market created by Binance and FTX right after the launch of the token.
All of this doubt has led some to believe that the best thing to do would be to short the token. FTX and Binance are offering Perpetual contracts- a type of futures contract that allows investors to bet on the price movements of an underlying asset. Simply put investors can bet on the price of the token lowering and with the sentiment being negative towards the token at the moment there are sure to be many getting in line to do just that.