Aptos is the new token that is making inroads, and not without criticism, in the crypto world and has caught the attention of the DEX PancakeSwap.
Aptos crypto piques PancakeSwap’s interest
Aptos (APT) was launched today on the major exchanges and immediately collapsed. On Binance, APT went from $59.39 to less than $7 in a matter of minutes.
According to CoinGecko it made minus 41% from its launch price ($13.73).
On Binance (which accounts for 50% of trading) – 90% from the high recorded in the first session.
APT’s Twitter announcement to airdrop 20 million tokens on its platform did not please its community.
“The Aptos foundation has provided early network participants with APT Tokens. If you are eligible to claim, you will receive an email from [email protected] in the next few hours.”
This was the 19 October tweet that opened the floodgates to a series of criticisms on the social network.
The criticisms on APT (Aptos)
The criticisms that have been made are mostly about misleading advertising, lack of transparency, and a huge allocation of VC tokens.
The more secure and scalable blockchain, as was promoted by Aptos itself in the launch campaign, has not lived up to expectations.
Until just before the launch nothing was known about how the token works, quantity issued or validation methods, in essence the tokenomics were nonexistent and this had forced the foundation to try to put a patch on it within hours of the launch that only served to make investors even more infuriated.
Another thing that was not liked at all is that 49% of the tokens were distributed in pre-launch to developers and private investors (Andreessen Horowitz $200 million and FTX $150 million).
Well-known cryptocurrency investor Miles Deutsche pointed out:
“Uniswap Labs is worth 1.66 billion
Aptos is worth 4 billion
About two billion dollars
Neither chain has performed any transactions on the core network but is worth more than DeFi protocol # 1.”
“Aptos is broken.
Aptos launched today October 17, 2022 at 14:22:40 however, Aptos currently has a lower tps than Bitcoin and most of the Tokens are staking or ready to be dumped on retail investors.
Curious? Discussion below.”
This is what was brought to attention by Paradigm Engineer #420 on Twitter.
Also, as reported by journalist Colin Wu, a bug in the airdrop system allowed some malicious users to get more Tokens than they expected due to a “Sybil” attack.
Binance and FTX in the Aptos affair
The user allegedly sold 189,567 APTs on Binance, dropping the price to $13.
The FTX exchange, on the other hand, encountered problems not in the buying phase but with the selling of the token for those investors who were planning to do so.
The action is temporarily halted and FTX developers are working hard to fix the problem as communicated in a note.
The Cobie podcast tweeted:
“How can there be a spot market if [the people] don’t know what the issuance schedule or the total supply of coins is?”
He was echoed shortly thereafter by Hassan Bassiri, vice president of Arca (a crypto investment firm):
“The amazing thing about this Aptos mat is that every CEX [centralized exchange] is listing it in 24 hours [and] yet you can’t find a single public [document] on tokenomics anywhere.”
Aptos in pre-launch was apostrophized for breaking promises of scalability and lack of transparency on tokenomics. However, these criticisms were rejected in toto by reassuring the community that everything was going according to plan.
“All 101 validators have been personally selected by the Aptos Foundation. They also had to sign an arbitration agreement in the Cayman Islands.”
This was communicated by former token developer Paul Fidika, who at the last moment decided to leave the project as he was critical of the Proof of Stake mechanism adopted and the HotStuff algorithm deemed unsuitable and too slow.
PancakeSwap and alternatives to the Aptos crypto
PancakeSwap wants to improve the Aptos mainnet.
PancakeSwap, which is based on BNB Chain, processes about $47 million in trading volume per day, but wants to migrate to and grow within Aptos.
“Aptos is a next generation L1 with low transaction costs, high transaction throughput and fast transaction speeds, which uses an innovative and developer-optimized approach to parallel execution. PancakeSwap has developed a strong relationship with the Aptos team and a large number of its developer ecosystem are suitable for the Pancakeswap partnership and products.”
When and if the partnership sees the light of day they will aim to implement swaps, farms, pools, and initial farm offerings on the DEX by Q4 2022.
The intention is to also bring native CAKE token into the new DEX although this is still up for a vote in PancakeSwap.
The project that is said to be capable of processing 130,000 transactions per second (TPS) is appealing to many developers.