Highly anticipated cryptocurrency Aptos (APT) underwent a shocking plunge on its trading debut on Wednesday, October 19th, amidst the backdrop of a bitter crypto winter.
The native token of the heavily backed Layer-1 blockchain opened for trade at a value of close to $9 dollars, initially surging within the first minutes to $13.73, according to CoinGecko. However, APT then underwent a crash of more than 68%, dropping its price to $6.73. At press time, the native token of the Aptos blockchain is trading at $7.95, registering a $1 billion market cap.
Binance, Coinbase (NASDAQ:COIN), Huobi, FTX, and OKX were among the first exchanges to open spot trading for APT, despite the fact that Aptos Labs has yet to publish transparent tokenomics or emissions schedules.
Many see the crash of APT as a consequence of venture capital firms unloading their tokens on retail investors. FTX, Coinbase Ventures, Binance, Jump Capital, Andreessen Horowitz (a16z), and prominent names have poured millions of dollars into the project, and, according to some estimates, Aptos Labs along with its investors hold more than 80% of the total token supply.
A Rocky Start
Aptos’ mainnet launch on Monday, October 17th, was anything but clean, as some users reported being unable to connect with validators to send transactions, among other serious issues.
The development team disabled its official Discord server, and users speculate that this was done to avoid users discussing the problematic launch. The Discord server has once again been muted again as of Wednesday after a flurry of scammers and disgruntled users poured into the server following the token’s launch.
The Proof of Stake blockchain has previously made claims that it would be capable of processing 160,000 transactions per second—three times more than its competitor Solana. However, two days after the launch, the so-called Solana-killer is carrying out approximately 21 transactions per second at the time of writing.
Aptos was cofounded by former Meta employees Mo Shaikh and Avery Ching who worked on Meta’s Diem project before leaving to found Aptos Labs.
Aptos joins other Layer-1 blockchains Ethereum, Cardano, and Avalanche in trying to solve the “Blockchain Trilemma” by providing security, scalability, and decentralization at the same time. Currently, Ethereum is considered to be the most decentralized and secure Layer-1 network, with various Layer-2 scaling solutions in development.
On the Flipside
- The project’s troubled start isn’t necessarily indicative of its future.
- It is unclear exactly who has been selling APT.
Why You Should Care
Aptos is a new, Layer-1 blockchain that is heavily backed by a number of prominent venture capital firms. Investors should always do their due diligence before investing in new tokens, as history shows that VC firms typically tend to dump their holdings immediately after a project’s launch.
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Heavily Funded Layer-1 Blockchain Aptos (APT) Launches Its Highly Anticipated Mainnet