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Aptos Launches Amid Some Criticism and APT Price Tumbles

Steve Miley trader
Updated 19 Oct 2022

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Key points:

  • The Aptos Blockchain Network Has Launched to Mainnet with Some Issues
  • Large Allocation to VCs And Developers Criticised
  • The Aptos Native Cryptocurrency, APT, Plunged Lower Post Launch

The new kid on the block(chain), four years in the making though, Aptos has launched its mainnet. This launch, however, was not without issues, with far slower than hyped transactions speeds and a VC weighted tokenomics. The native token to Aptos, APT, has also begun trading and seen a significant move lower in price.

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The Aptos Blockchain Network Has Launched to Mainnet with Some Issues

Aptos launched its mainnet on Tuesday after four years in development. Aptos was founded by Mo Shaik and Avery Ching who had previously worked on the Diem project, Meta’s brief venture into the world of blockchain that was halted by regulators. Aptos uses a technique called “parallel execution” with the aim of speeding up transaction speeds, whilst also keeping them cheap. “Parallel execution” is a method of ordering and combining transactions to rapidly accelerate the process. Aptos uses Move a blockchain proprietary programming language, which highlights scarcity and access control.

Also Read: What Is the Crypto Fear and Greed Index?

Aptos has claimed that in testing it has dealt with 130K transactions per second (TPS), in comparison for example Ethereum which handles 30 per second. However, at launch, the Aptos blockchain mainnet did encounter some issues, and was reported to have a TPS of just seven, less than the Bitcoin blockchain.

Source: Coinbase.com

Large Allocation to VC And Developers Criticised

Aptos has come into criticism for its allocation of tokens. A venture capital (VC) heavy tokenomics has been critiqued. The initial total supply of Aptos tokens (APT) at mainnet was 1 billion tokens. Below is the distribution of these tokens.

Category % of Initial Token Distribution Initial Tokens
Community 51.02% 510,217,359.767
Core Contributors 19.00% 190,000,000.000
Foundation 16.50% 165,000,000.000
Investors 13.48% 134,782,640.233

The Aptos Foundation holds 410 million tokens overall, which will be released over the next 10 years.

The Aptos Native Cryptocurrency, APT, Plunged Lower Post Launch

The native cryptocurrency to the Aptos blockchain is the APT token. The major cryptocurrency exchanges, Coinbase, Binance, and FTX (all of which are Aptos investors), have listed the APT token. According to Coinbase, the APT token has plunged after the launch to $7.50 at time of press, from a peak of $8,55, down 10.61%.

Steve has 29 years of financial market experience including 3 years at Credit Suisse and 15 years at Merril Lynch. Steve is the Academic Dean for The London School of Wealth Management and has won many awards from Technical Analyst Magazine.